SoundCloud Is Trying to Secure $150 Million in Funding

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SoundCloud recently entered into a licensing deal with Warner Music Group (WMG), but they haven’t reached an agreement with Sony or UMG.  WMG will buy three to five percent of SoundCloud; equity stakes are likely part of the other major label negotiations as well.

These licensing talks are part of a wider SoundCloud strategy to provide payouts to artists and labels — a strategy major labels have been pushing.  SoundCloud is  slowly moving toward a paid subscription model that would allow users to listen to ad-free music.

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SoundCloud is now trying to raise more money to carry out this strategy, reports the Wall Street Journal.

They are reportedly in talks to raise $150 million, bringing their valuation to over $1.2 billion.

SoundCloud has hired investment bank Allen & Company to oversee the round.


Nina Ulloa covers breaking news, tech, and more. Follow her on Twitter: @nine_u

One Response

  1. Remi Swierczek

    What kind of strategy?

    Music industry needs Radio and streaming operating as simple discovery based MUSIC STORE.

    SoundCloud can drift to Radio or streaming or it can become central hub feeding coded music to DJs a provide monthly payout to everyone.