SoundCloud Nears Deal To Sell Majority Stake To Private Equity Firms
[UPDATED] A struggling SoundCloud may have found not one, but two lifelines. A pair of private equity firms are reportedly close to each taking a separate stake in the unprofitable music streamer that would collectively mean the acquisition of a majority of the company.
SoundCloud is reportedly close two selling a majority stake to two private equity firms. Co-founder and Chief Executive Officer Alex Ljun of the troubled music streamer has long resisted selling the company to a single buyer; and this split investment could allow him to retain more control and not be beholding to a single new owner or investor.
This report, which came via Bloomberg sources "familiar with the matter," offered no details including the identity of each equity firm, the size of their investments or the terms.
The news of new investments come less than two weeks after SoundCloud laid off 40% of its staff, and multiple leaks revealed a startup quickly running out of cash.