It was recently reported that Soundcloud may have found the solution to its growing problem of continuing operations. The company received a $150 million dollar investment from The Raine Group and Temasek Holdings. However, that deal has yet to be approved.
Investors can either accept or reject the proposal by tomorrow, August 11th. If the investors accept the offer, the company can continue operations. If it doesn’t, the company could not continue as reported by CEO Alexander Ljung. Because of the conditions of the offer, which gives less than preferential treatment to investors in case of liquidation, investors are worried about their future prospects. Even if the deal goes through, Soundcloud would endure quite a restructuring by replacing its CEO with Vimeo CEO Kerry Trainor, as well as a new Chief Operating Officer.
We can only hope for the survival of a music streaming platform that has brought so many artists to a wider audience. We will find out on Friday.
H/T: Your EDM
