SOUNDCLOUD IS CONSIDERING SELLING UP, REPORTS BLOOMBERG
Company values itself at $1 billion…
Soundcloud and its investors are reportedly considering selling the music streaming service, according to reports from Bloomberg.
Apparently sources close to the company told Bloomberg that its investors and founders are weighing up the idea of selling the hugely popular music streaming service.
Whilst the service boasts an impressive 170 million active users, Soundcloud has been largely kept afloat by investors, and has yet to produce a profit.
Whilst no decision has been taken — discussions are still in preliminary stages — it’s not the first time reports have emerged that Soundcloud could be up for sale.
In 2014, it was widely reported that Twitter was interested in purchasing the service, but decided against it due to the company’s inability to sign deals with the major labels.
Now those deals have been done, and Soundcloud isn’t being threatened with copyright lawsuits, it might be the right time for the founders and investors to recoup some of their investment.
The only other option is to float the business on the stock exchange, but considering they’ve yet to produce a profit that would be highly unlikely at this stage.