A struggling SoundCloud may have found not one, but two lifelines. A pair of private equity firms are reportedly close to each taking a separate stake in the unprofitable music streamer that would collectively mean the acquisition of a majority of the company.
SoundCloud is close two selling a majority stake to two private equity firms. Co-founder and Chief Executive Officer Alex Ljung of the troubled music streamer has long resisted selling the company to a single buyer, and this split investment could allow him to retain more control and not be beholding to a single new owner or investor.
The news comes less than two weeks after SoundCloud laid off 40% of its staff, and multiple leaks revealed a startup quickly running out of cash.
This new report which came via Bloomberg and “people familiar with the matter,” but offered no details including the identity of each equity firm, the size of their investments or the terms.
It is hard to imagine that SoundCloud is not paying dearly for any infusion of funds; and while the company recently claimed strong incremental revenue increases, it is unclear how it plans to become a profitable company in the near future.