Published: Sun, August 13, 2017
Markets | By Noel Gibbs

Exciting news and the future of SoundCloud

Exciting news and the future of SoundCloud

SoundCloud, the world's most popular streaming music app, but one that has struggled to find a profitable business model, said it received new funding on Friday, insulating it from potentially running out of cash this year.

According to Ljung, SoundCloud just wrapped up its largest financing round, receiving $170m (£135m) from The Raine Group and Temasek. Raine and Temasek were not immediately available for comment. Now, it has been revealed that their CEO Alex Ljung will be replaced by Kerry Trainor, former CEO of Vimeo. Kerry Trainor and Michael Weissman, former executives of video-sharing platform Vimeo, will also join the company as CEO and COO of SoundCloud respectively.

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A notice put out by Guam's Joint Information Center Saturday warned residents how to prepare "for an imminent missile threat". The 160,000 residents of Guam are in the crosshairs of escalating tensions between North Korea and the United States .

Ljung will continue to serve as chairman, and co-founder Eric Wahlforss will stay with SoundCloud as chief product officer.

The news also comes with a leadership change.

USA destroyer sent to Chinese waters as North Korea crisis deepens
But observers ask is the technology actually being used as a political and military tool to secure its territorial ambitions. Its sweeping claims overlap with Vietnam, the Philippines, Malaysia and Brunei - all ASEAN members - as well as Taiwan.

As BBC reports, the company was at risk of shutting down entirely should new funding not have been approved by its shareholders, in the wake of a string of hits to its operations, including the recent downsizing of its workforce by 40%, or 173 jobs, last month. "All of this together-the capital, the capital partners, with Kerry and Mike joining our team-it puts our company in a really great position to stay strong and remain independent".

In its blog post, the decade-old, Berlin-based company said that at current sales levels, it was on track to more than double its revenue to $100 million over the next 12 months. The company launched a subscription music service a year ago, but that didn't generate enough revenue to avoid last month's layoffs. Atop all that, should this new investment close tomorrow, SoundCloud's pre-money valuation will have decreased a whopping 77 percent, from $640 million in 2014 to $150 million.

Tropical Depression 8 forms in the western Atlantic
The Atlantic could have a new tropical depression in the next few days, and this one could move close to the East Coast. The system had sustained winds of 35 miles per hour with gusts up to 46 miles per hour late Saturday night.

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