It was recently announced that SiriusXM Holdings has invested $75 million in SoundCloud. SoundCloud will use this investment to accelerate its product development and enhance the services to accommodate its community of creators and listeners, as mentioned in the announcement.
Soundcloud was on the verge of bankruptcy several years ago, but in 2017 it attracted a $170 million investment from Raine Group and Temasek. The company had since been stabilized and has shown a significant amount of growth.
According to Variety, that deal saw the company’s cofounders of SoundCloud phasing into roles as chairman of the board and consultant, and former Vimeo CEO Kerry Trainor as chief executive. As for this new deal with SiriusXM, this investment would the company a fresh business perspective.
“SoundCloud’s three consecutive years of strong financial performance directly reflect the success of our creator-led growth strategy,” said Trainor. “We have an exciting roadmap focused on deepening the connections between creators and listeners that fuel creator discovery, career growth and the evolution of music culture on SoundCloud. We’ve built a great relationship with SiriusXM through our highly successful Pandora ad sales agreement, and their investment gives us added capital flexibility to accelerate our vision and take advantage of strategic opportunities as they arise.”