If it looks like a duck, walks like a duck, quacks like a duck, then, according to SoundCloud, it’s probably fake news.
First, Spotify walked away from a rumored acquisition deal. According to the Swedish company, acquiring SoundCloud would slow down their IPO plans. Then, the company posted weak financials. Net losses grew at an accelerated rate to 52 million in 2015. Revenues were only at $22 million.
In fact, if the company’s premium service, SoundCloud Go fails to take off, co-founder Alexander Ljung stated,
“The risks and uncertainties may cause the company to run out of cash earlier than that date, and would require the Group to raise additional funds which are not currently planned. These matters give rise to a material uncertainty about the Group’s ability to continue as a going concern.”
Then, DMN reported on some upsetting news for the company. Two key executives suddenly (read: abruptly) left the company. SoundCloud COO Marc Strigel and Finance Director Markus Harder resigned. The Financial Times first broke the news on Sunday.
SoundCloud confirmed the FT article but downplayed the high-profile departures. The company said that both executives simply moved on to “new adventures.”
However, FT reported that the company is currently in dire straits. At the same time of the departures, the company started a “desperate” fundraising effort. Quoting an anonymous German financier, SoundCloud is “begging for money.”
Yet, following the original article, SoundCloud went on the defensive. The Berlin-based streamer blasted the Financial Times, calling the article “inaccurate” (despite confirming the high-profile departures). Characterizing the article as “disappointing, the company stated,