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.
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