After fear spread that Soundcloud may be closing down, there is now hope for the streaming service amid reports of massive investment.
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Earlier this year, Soundcloud closed down two of its offices and laid off 40% of its staff amid financial difficulties. The company’s headcount is reportedly set to shrink from 420 to 250, and many users feared their music would disappear.
Now, Soundcloud looks like it may well be saved – as Bloomberg reports that they are very close to selling off huge stakes to keep it afloat.
The investment comes from Raine Group, a boutique bank headquartered in New York who have previously invested in the likes of Vice Media, and Singapore’s state investment firm, Temasek Holdings. A deal could be announced as soon as the end of this week.
Earlier this year, however, SoundCloud was reportedly considering selling for considerably less. The service, valued at $750 million in 2014, are reportedly looking to secure between $100 million (£76 million) and $250 million (£188 million) in order to keep going.