Picture Credit score: Rachit Tank
Following rumors of a $1 billion+ potential sale, SoundCloud CFO Drew Wilson is exiting the corporate. Right here’s what we learn about this growth.
Over the weekend a report surfaced in Sky Information suggesting the music streaming app was holding talks with funding banks a couple of potential public sale of the corporate. There have been no clues on who might be attention-grabbing, nevertheless it’s price noting that Raine and Temasek are majority house owners, whereas SiriusXM has invested $75 million within the platform.
Exterior of itemizing, ‘insider’ sources, Sky has supplied no different sources for the projected sale worth. However now, SoundCloud insiders have advised Digital Music Information that CEO Eliah Seton introduced the departure of the CFO in an inner memo on January 8. Drew Wilson joined the corporate in 2021.
SoundCloud has seen a excessive quantity of govt turnovers in the previous few years. In 2022, the corporate laid off 8% of its workforce in an try to chop prices. One supply talking anonymously to DMN stated, “Eliah’s finest remark I ever heard was him saying folks on the board have been round longer on the firm than anybody in management and a lot of the workers.”
SoundCloud CEO Eliah Seton has been credited with serving to the corporate proper itself, although profitability has been elusive. Even rival Spotify has struggled with profitability after its huge funding within the podcast format. Following shake-ups, each firms look like responding to shifts within the investor panorama—looking for to shore up threat as funding winds change.
Whereas SoundCloud has a wholesome fanbase and has helped encourage new musical actions, together with ‘SoundCloud Rap’—it’s unclear if the platform might fetch that rumored $1 billion price ticket. 2024 guarantees to be an attention-grabbing 12 months in music as Sky suggests a possible sale might not occur till just a few months into the 12 months. For what it’s price, SoundCloud itself has been mum on the rumors, regardless of reaching out for remark.