The fate of SoundCloud has been in a state of uncertainty for most of this year, but it now seems that the digital music platform will be here to stay for the foreseeable future.
As we reported earlier in the week, boutique merchant bank The Raine Group and investment company Temasek Holding had decided to invest $150 million to keep SoundCloud running. Today all investors had a vote on whether or not to go through with rescuing the company, with prioritized votes going to the new investors. Musicians and fans of the service can rest easy now as the investment is official now, which has now been raised up to $169.5 million.
Along with this investment came the announcement that founder and CEO Alex Ljung will be replaced as part of the deal. Former Vimeo CEO Kerry Trainor will be stepping in to take over chief executive duties while Ljung will still remain on the board. Trainor plans on using his background in video streaming to emphasize developing tools for musicians and expand the paid Pro & Unlimited services that SoundCloud now offers.
It will be interesting to see where the company goes after this change in management, but it is promising that they are still staying independent. We are happy to hear that one of our favorite places for finding new music and a great place for artists to share theirs will be staying around. Enjoy!