SoundCloud Officially Saved By New Investment Deal

Soundcloud investment deal

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!

SoundCloud Saved By New Investment Deal

Soundcloud Logo

Unless you’ve been living under a rock over the past month or so, you’ve probably heard about the uncertain future of SoundCloud. Rumors began swirling in early July when the music distribution service laid off 40 percent of their staff and closed multiple offices, as reported by Billboard and various other news outlets.  

After continuous headlines citing the very real chance that SoundCloud was going under, none other than Chance The Rapper stepped in, tweeting that “Soundcloud is here to stay.” He topped off this announcement by dropping a new single with Young Thug, “Big B’s,” via SoundCloud.

Today the good news continues, although SoundCloud remaining the familiar music source we know and love is still uncertain. As reported by Music Business Worldwide last week, “very solid industry sources” have confirmed that The Raine Group and Temasek Holdings will be investing a combined amount of around $150 million into the company, consequently taking control of the majority of its equity.

This is good news, as this investment will ensure SoundCloud’s survival. However, there’s no doubt that the two groups will want to make changes to the platform in order to make it more valuable in the future. At the very least, music fans can breathe easy knowing that one of their favorite streaming services is alive and, as Chance The Rapper himself said, here to stay.

Mixtapes Released On Soundcloud Will Be Eligible To Win A Grammy In 2018

Chance Color press shot

Just last year, Chance the Rapper managed to change the landscape of the music business by pushing through a petition to change the Grammy qualifications so that mixtapes that are not sold could still be be considered eligible to win. Thanks to his effort, Chance was nominated for seven total Grammys with his latest project, Coloring Book, being nominated for three, all of which he has a great chance of winning. 

Well Chance has just broken some news that, in 2018, all projects released on Soundcloud will be eligible for a Grammy, regardless of if they are up on streaming services. The Grammys has shared new criteria in which music to be considered is from a streaming service that has existed for over a year and has a paid subscription service. Since Soundcloud Go launched back in March, they missed the cutoff for the 2017 Grammys, but Soundcloud projects will be eligible for next year's award show. 

This is amazing news for independent artists who might not be familiar with the process of getting music up on streaming services. It's exciting to see such a long-running, highly-respected award organization adapt to the modern landscape of music. 

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