SoundCloud Headed for the Cut-Out Bin?

Recode:

Sources say {SoundCloud} has been trying to raise more than $100 million since last summer, without success. It has also talked to potential acquirers, including Spotify, without closing a deal.

The upshot, according to people familiar with the company: SoundCloud is now at a point where it may sell for less than the $700 million investors thought it was worth a few years ago. One source thinks it will consider bids, as long as they’re above the total investment it has raised to date — about $250 million.

SoundCloud’s struggle is taking place while there’s renewed investor interest in streaming music. Even though the industry’s economics are challenging, users have embraced streaming, and are even willing to pay for it: Spotify, which would like to go public next year, says it has more than 50 million paid subscribers worldwide. Apple Music says it has more than 20 million paid subs. {SoundCloud} says it has 175 million monthly unique users, but it hasn’t updated that number since 2014.


With Pandora experiencing similar woes, it would seem that a tech company wanting to enter the music landscape could make a big splash by acquiring both SoundCloud and Pandora at a good price and combining their users. Maybe one of these will be interested?


Update: SoundCloud forges ahead … this just in from Hypebot:

Beginning today, SoundCloud is inviting DJs and producers who create sets, remixes and other forms of creative works to join its Premier program to earn revenue for the tracks they share on SoundCloud.

Premier creators can monetize their content and earn a portion of the revenue generated by subscriptions and advertising on SoundCloud. Acceptance is still "invite only," but you can apply here.

SoundCloud has not shared how many artists are Premier members, its criteria for acceptance, or how revenue is shared with creators.