Report: SoundCloud will be put up for sale in 2024
The platform’s owners are seeking a $1 billion deal, according to Sky News.
SoundCloud logo. Photo by LIONEL BONAVENTURE/AFP via Getty Images
SoundCloud will be put up for sale in 2024, Sky News reported on Sunday, with the streaming platform’s owners reportedly hoping to secure $1 billion in any potential deal. A SoundCloud representative declined to comment on the story when reached by The FADER.
Raine Group and Temasek Holdings, two major SoundCloud shareholders, have reportedly begun the process of interviewing investment banks “about a prospective auction of the company.” Any potential sale is not expected to take place immediately, a source told Sky, saying that it would most likely take place later in 2024.
SoundCloud was founded in 2007 and faced closure in 2017 before Raine Group and Temasek invested a joint $170 million into the company. SiriusXM acquired a minority stake with a $75 million backing in 2020.
Last year, the company laid off eight percent of its staff, around 40 people. In an email sent to staffers, CEO Eliah Seton called the move “a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year.”