Soundcloud is the hub for every music lover, every music enthusiast out there, trying to make it in the world by talent and knowledge. This platform offers a plethora of genre and mix matching of the present ones. But recently, it was facing a lot of trouble because of monetary issues. It had to secure an amount of money, to survive the crisis.
It looks like, after all, Soundcloud sailed through this issue and is soaring with flying colours. Reports say that the company pulled up their socks and secured $170m (£135m) through investment. There were under immense pressure as an ultimatum was put on them. According to that, if Soundcloud weren’t able to get funding approved by Friday, then it would be pushed towards closure. The one platform for budding artists would have seen the closed gates.
But as fate would have it, the company has whisked their way to victory. Alexander Ljung who is the chairman of the company said that “Soundcloud is here to stay,”. According to the deal, he will be required to step down as the chief executive officer of the firm. Diligent fans were seen concerned about shutting down of the company, so they started backing up their uploads, and data so that if at all the site goes offline, their things are still with them. Chance the Rapper, who is one of the high profile users took a stand vocally to support the existence of it.
The Berlin-based company was reported to have laid off 40 percent of its staff in July which makes it 173 people in total. There was even a note circulated by the chairperson Ljun stating that without a resource, Soundcloud would not be able “to continue as a going concern”. But by Friday, things started looking brighter and better. After “This financing means Soundcloud remains strong and independent,” Mr Ljung shared in a blog post.
Now after this maelstrom, the company will be given a makeover. There will be substantial changes in the leadership of Soundcloud, as mentioned Mr Ljung would step down as the chief executive and Kerry Trainor will take his place who is the former boss of video-sharing site Vimeo, and even Mike Weissman formally working at Vimeo, will be seen as the chief executive officer.
“Over the last few weeks, I’ve been moved by the outpouring of commentary around Soundcloud’s unique and crucial role in driving what global culture is today (and what it will become tomorrow). You’ve told me how, without Soundcloud, there would be a giant gaping void in today’s world of music. We can’t have that, and I’m happy to once again say that won’t be happening.” Said Mr Ljung getting a bit emotional over this achievement.
Soundcloud will now work at reducing costs. Having more than 40 million users, the firm’s money will be documented well and maintained.
Let us hope, they only get stronger and bolder after this. Long live the king!