SoundCloud survives, emerging voices in music will not be silenced

Soundcloud CEO To Be Replaced By Vimeo CEO Following $170 Million Investment to Keep Company Afloat

Soundcloud CEO To Be Replaced By Vimeo CEO Following $170 Million Investment to Keep Company Afloat

However, the new round of investment - which includes contributions from NY financiers The Raine Group and Singaporean company Temasek - represents the largest funding boost in the company's history, and should at least alleviate some of its woes as it looks for more ways to monetise its 40 million-strong user base, Ljung said in a statement. But the SoundCloud did not reveal the amount of the investment.

Former Vimeo CEO Kerry Trainor will replace founder Alex Ljung as chief executive.

"The investment will ensure a strong, independent future for SoundCloud, funding deeper development and marketing of its core tools used by millions of audio creators", said the company in a statement published this afternoon. From prior Vimeo-fame (a platform we love!) comes Kerry Trainor and Mike Weissman, two awesome leaders who will be joining SoundCloud as CEO and COO, respectively.

Ljung will continue to serve as chairman, and co-founder Eric Wahlforss will stay with SoundCloud as chief product officer. SoundCloud disclosed steps it would cut its overhead costs last month, which included 173 layoffs.

In July, SoundCloud fired 173 employees and closed its London and San Francisco offices to focus on Berlin and NY.

SoundCloud remains the world's most popular free music phone app, with roughly 88 million active users, according to online audience tracking firm SimilarWeb.

Axios reported the term sheet circulating among existing investors since Tuesday set Friday as a deadline to agree to the new investment structure.

Axios reports it has obtained a memo that was sent to SoundCloud's current shareholders on Tuesday, indicating that a pending reorganization proposal is "do or die" for the music streaming platform.

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