It truly was unclear if the revolutionary music platform would live to stream another song.
A tool that has helped so many—and launched the careers of today’s hottest burgeoning artists—was flirting with the possibility of evaporation only hours ago. After significant, unexpected layoffs, an uncertain financial future due to a capricious investment narrative, and an ambiguous savior, Chance The Rapper, we were left pondering the fate of music’s primary social media source, SoundCloud.
In order to stay afloat, the 2007-founded company required significant capital contributions of $170 million, and it was unclear if SoundCloud would be terminated absent the investment. Sweat hugged the temples of every aspiring musician and fans as we all awaited the decision. Music lovers and creators, wipe your foreheads—SoundCloud is saved.
Announced in a blog post by co-founder Alexander Ljung earlier today, the chairman informed the community that the rumored investors, The Raine Group and Temasek, removed their glasses, tightened their capes, and saved the day. With the hefty investment—SoundCloud’s largest to date—comes additional value as well: former notable Vimeo employees, Kerry Trainor and Mike Weissman, will join the SoundCloud team as CEO and COO, respectively. Ljuang wasn’t wistful when denouncing his role as Chief Executive—he seems happy to redirect his focus towards chairman duties, reserving his brainpower for macro ideas. Hopefully this revamped executive team re-stabilizes this necessary music platform.
The looming threat of closure was a disheartening prospect. These past couple of months of uncertainty were interesting to say the least. Now, it appears that order has been restored, and SoundCloud will be humming for years to come. I for one couldn’t be happier.