Investors decide today whether the plug is out of Soundcloud
Shareholders asked to invest 170 million more
6 hours ago, by editors 3for12
Soundcloud does not work well. The company has been in vain for years to become profitable, yet another 40% of its staff had to be dismissed a month ago and seems to be on the threshold again today.
News site Axios reports a leaked memo, inviting investors to invest another $ 170 million in the streaming service. The reserves would be dried up and the money needed to pay off debts and keep the company operational. If the investors do not drive it, it could mean that Soundcloud finally topples and all previous investments in smoke go on.
Soundcloud became known and successful as a free music service, which includes many DJ sets. But by copyright claims, that open model came under pressure. For that reason, Soundcloud attempted to make a transition to a paid service, but that tranformation does not seem to hit the users. Rather, it was reported that Spotify giant Spotify wanted to take over their distressing competitor, but Sweden finally saw it.