SoundCloud was launched in 2008 and has never said how many paying subscribers it has, but launched a budget subscription package for hoping that will have more listeners to convert from its free service, which that also did not do well.
Embattled streaming service SoundCloud has been saved from closure by a last-minute investment of $US170 million (about $222 million) in a deal that will also see chairman Alexander Ljung step down from his role as chief executive.
SoundCloud's future has appeared uncertain in recent months, with acquisition talks from both Spotify and Twitter falling apart, platform issues causing core users to flee, and a surprise cut of 40 percent of its workforce in July.
If the proposal is accepted, then a new cash infusion ($169.5 million at a $150 million valuation prior to the investment) from boutique merchant bank The Raine Group and Singapore's state investment firm Temasek will close tomorrow.
Axios reported the term sheet circulating among existing investors since Tuesday set Friday as a deadline to agree to the new investment structure.More news: Wall Street finished a hard week on a high note
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"All of this together - the capital, the capital partners - with Kerry and Mike joining our team - it puts our company in a really great position to stay strong and remain independent", Ljung told Billboard. Co-founder and Chief Technology Officer Eric Wahlross will remain at the company as chief product officer.
"If I could show to you the number of people who have been calling us, expressing fear about it going away, you would be shocked", said Fred Davis of the Raine Group.
"After a decade of balancing the roles of Founder, CEO and Chairman I'm excited to hand the CEO reins over to Kerry to allow me to fully focus on the role of the Chairman and the long-term", Ljung said.
"SoundCloud is the largest open audio platform in the world", Trainor said.