Soundcloud Could Be Dead In 24 Hours If Bailout Not Approved
Backup your music and podcasts if you have them on Soundcloud’s platform because it may all be gone tomorrow.
Independent artists, DJ’s and podcast shows are waiting on the fate of Soundcloud as the company’s investors determine whether or not it’s worth a bailout.
A leak has surfaced reporting that although the company has 60 million paying subscribers, thats not enough to keep the company afloat.
The issue however is that the investors themselves are unhappy with the idea that the bailout investors Raine Group and Tamesek would receive preferential treatment, meaning that the others would be de-prioritized and have a hard time making a return on their upfront investments.
Existing investors would face some raw deal terms. In the case of an eventual fire-sale or liquidation, Raine and Temasek would get to recover their funds first, along with any other investors participating in this ‘Series F’. Sounds like a bad deal, except that the alternative is destroying SoundCloud forever.
CEO Alex Ljung is urging all investors to say “yes” to the bailout of $170 million dollars to save the company and employee’s jobs.
This bailout may save Souncloud, but as for Ljung – looks like the CEO might need to find a new company to run as rumors have been circulating that if the company his saved, his job won’t be.
Do you think Soundcloud should be saved?
Update: Soundcloud was saved for $170 million!