SoundCloud Saved by $170 Million Investment as Co-Founder Steps Down as CEO

SoundCloud Saved by $170 Million Investment as Co-Founder Steps Down as CEO
Following the recent news that the end was near for SoundCloud, the popular streaming service has secured a massive cash injection to remain afloat.

As Billboard reports, merchant bank Raine Group has teamed up with Singapore-based investment company Temasek to fire over a $169.5 million USD investment to SoundCloud. And while this will keep the streaming site independent for now, a new executive team will be taking over.

Kerry Trainor, the former Vimeo CEO, will replace outgoing chief executive and SoundCloud co-founder Alex Ljung, while Michael Weissman has been named SoundCloud's new chief operating officer.

All this comes as reports emerged of SoundCloud's internal financial struggles, which saw the company lay off 40 percent of its staff, cutting 173 of its 420 employees early last month.

"All of this together — the capital, the capital partners —with Kerry and Mike joining our team — it puts our company in a really great position to stay strong and remain independent," Ljung told Billboard. "We see a strong, independent future for the company."

Ljung and fellow co-founder Eric Wahlforss will remain with SoundCloud, with Ljung now serving as chairman of SoundCloud's board and Wahlforss as chief product officer.

"There is only one SoundCloud. It's unique. We just closed out the first decade and created a really unique platform that impacts global music every day," said Ljung. "I'm really excited about the next decade."