Soundcloud reportedly set to to go on sale for over $1bn
Last year the streaming platform laid off 8% of its global staff
SoundCloud is reportedly set to sell for over $1bn.
According to Sky News, the owners of the streaming platform — US merchant bank Raine Group and Singaporean state investment fund Temasek Holdings — are currently in talks with investment banks about a potential auction of the Berlin-based company.
Sky's Mark Kleinman wrote yesterday (7th January) on X that a deal "could fetch more than $1bn and underscore the turnaround in the company's fortunes." The deal is reportedly due to take place later this year.
In 2017, Raine Group and Temasek Holdings saved SoundCloud's from going under with an investment of $170 million. The company launched their new fan-powered royalties system in March 2021 in a bit to "revolutionise" the way in which artist royalties are paid.
However, in August 2022, SoundCloud announced their move to lay off 20% of its workforce, further adding to this by letting go 8% of its staff in May 2023 as part of a bid to make the streaming platform profitable. The move affected approximately 40 of its staff.
SoundCloud reportedly declined Sky News' request for comment.
