SoundCloud may sell for $250 million in desperate bid to raise cash

The streaming service was valued at $750 million in 2014, but has struggled to raise cash since

SoundCloud is reportedly considering selling for $250 million, despite being valued at three times that amount back in 2014.

The streaming platform has been trying to raise $100 million since last summer, according to sources, and has raised around $250 million in investments to date, hence the sale price.

Twitter almost bought the platform last year, but invested $70 million in it instead.

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Recode reports that SoundCloud’s efforts to raise money so far have been unsuccessful, and that it’s spoken to potential buyers including Spotify, but hasn’t been able to secure a deal.

Spotify was poised to take over SoundCloud last December in a deal thought to be worth £535 million, but pulled out over “material uncertainties facing the business”.

Last year, SoundCloud announced it was going to stop taking down DJ’s mixes over copyright infringement.

Prior to the change to the copyright identification system, DJs and artists could only post mixes if they had permission to use the copyrighted tracks. But the system was prone to mistakes, and had been known to remove content featuring the uploader’s own material.

DJ Four Tet wasn’t a fan of the old system – he Tweeted in June last year that it was a “total slice of sh*t”.

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