The past year has seen the world’s largest audio library SoundCloud battle to stay afloat in the market, but the future of the streaming platform seems secure, at least for now, thanks to a new investment deal.
In a press release SoundCloud revealed the new deal with global merchant bank The Raine Group and Singapore investment firm Temasek, worth just shy of $215 Million AUD.
“The investment will ensure a strong, independent future for SoundCloud, funding deeper development and marketing of its core tools used by millions of audio creators,” said a representative for SoundCloud.
Billboard also reports that that founder and CEO Alex Ljung will step down as CEO, to be replaced by former Vimeo CEO Kerry Trainor. Variety is reporting that the new investors will now own over 50% of the company.
The restructure of the company will hope to arrest the massive losses suffered by the company over the past few years.
The popularity of the company plummeted in 2016 with the site’s “automated content identification” causing countless DJ mixes to be banned from the site. SoundCloud announced a new agreement last December, claiming to have fixed the issue, but DJs haven’t exactly been flooding back to the service.
The move also comes just less than a year after SoundCloud launched their paid streaming service SoundCloud Go in Australia.