SoundCloud is set to be sold for over $1 billion

SoundCloud is set to be sold for over  billion

The sale is expected to take place later this year.

Berlin-based music streaming platform SoundCloud is reportedly in talks for a potential auction that could result in its sale for over $1 billion. The owners of SoundCloud, US merchant bank Raine Group, and Singaporean state investment fund Temasek Holdings, are said to be discussing the sale with investment banks.

According to Mark Kleinman of Sky News, the deal is expected to fetch more than $1 billion and highlight the company’s improved performance. The sale is anticipated to occur later this year, representing a significant milestone for SoundCloud.

In 2017, SoundCloud was rescued from financial difficulties when Raine Group and Temasek Holdings invested $170 million in the struggling platform. Since then, SoundCloud has taken steps to modernize its artist royalty payment system, introducing a new fan-powered royalties system in March 2021.

To enhance the profitability of the streaming platform, SoundCloud implemented significant cost-cutting measures. In August 2022, the company announced a 20% reduction in its workforce, followed by an additional 8% staff reduction in May 2023, affecting approximately 40 employees.

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