Soundcloud Secures New Funding to Avoid Shutdown

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Now, Axios reports that the company is calling for shareholders to consider a hail mary investment plan to save itself before the end of today, Friday the 11th of August. The folks at Axios reported the news yesterday (Aug. 10). But that is in no way guaranteed, because the entrance of new investors could alter the picture significantly for the ones that had already put their money into the struggling streaming service.

The company said in a blog post that the new financing round was raised from media-focused investment bank Raine Group of NY and Singapore's sovereign wealth fund Temasek, without disclosing the amount of the funding or other terms.

Ljung didn't say how much the company had raised, but said it was the biggest in the company's history. In other words, if the older investors don't approve of the new ones-or in other words, vote "yes"-SoundCloud is probably done for".

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Under the deal, the new investors will acquire more than 50 percent of the company, which had its pre-money valuation slashed to $150 million. While returning backers would include Union Square Ventures, Doughty Hanson and Atlantic Technology, with all investors receiving Series F stock.

Recode reports that one of the conditions of the new funding deal would be the replacement of Ljung with former Vimeo CEO Kerry Trainor.

The Raine Group investment is said to be driven by Raine Group partner Fred Davis, who previously advised media companies like Spotify, Shazam, Hulu, YouTube and Rhapsody. We'll just have to wait and see.

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