Could this be the end?
Things aren’t lookin’ so good for SoundCloud after all. A few weeks ago, two ‘rescue investors’ began an attempt to revive the dying platform with a hefty investment of $170 million. However, as Digital Music News reports, these new investors need to first be approved by a panel of old investors; which won’t be so easy.
The potential rescue vote will take place today, but it’s not lookin’ great due to some interesting terms surrounding the vote. If the vote passes, the new investors will be prioritized within the company, therefore worsening terms for the OG investors. This means original investors will have a harder time recovering their cash, leaving us all wondering why anyone would ever vote to essentially put themselves in financial danger.
Unless these investors have SoundCloud’s best interest in mind (highly unlikely), the rescue package will be veto’d. In turn, with no money to help fund the platform, SoundCloud will be facing serious issues and potentially be forced to terminate the company.
CEO Alex Ljung is obviously hoping that the vote passes, but will likely be fired if so. The additional $170 million that SoundCloud is currently seeking may never come their way.
Stay tuned for more developments on this story.