Reports of a SoundCloud cash crunch and sell-off at 40% below investor valuation surfaced yesterday, even as the music streamer expanded its Premier Platform. Now SoundCloud is pushing back, saying that news of its pending demise are greatly exaggerated.
In a statement released later yesterday SoundCloud disputed reports that it was in dire financial straights:
"While we do not comment on rumors or speculation, we can say the latest Recode article doesn't accurately portray the current state of the SoundCloud business. We are actively speaking with a variety of potential investors and other strategic partners. These conversations, led by our recently appointed CFO Holly Lim, reflect the market interest in our differentiated platform, unmatched user reach and strong outlook for 2017 and beyond. We expect to see 2.5x year-over-year revenue growth in 2017, driven in part by SoundCloud Go, our just-launched mid-priced consumer subscription."