SiriusXM invests $75 million to play a bigger role in SoundCloud
The circumstances surrounding this newest funding could not be extra completely different than the final time SoundCloud raised cash. By its personal admission, the corporate was shut to working out of runway in 2017. That July, it lower 40 p.c of its workforce, shedding 173 individuals and shutting down its San Francisco and London places of work because it tried to lower prices. Later that very same 12 months, SoundCloud secured a $170 million funding. Almost three years later, SoundCloud says it is transferring towards producing greater than $200 million in yearly income. It plans to use the $75 million to create new merchandise, in addition to additional construct out the providers it already presents.
It’s tempting to see the funding because the prelude to a attainable acquisition. In 2018, SiriusXM purchased Pandora one 12 months after it invested $480 million into the corporate. There’s additionally an apparent synergy between the businesses. SoundCloud and Pandora already work carefully collectively to promote adverts in the US. And by buying SoundCloud, Sirius would have much more content material to play throughout all of its platforms.