The renowned music streaming company, SoundCloud has raised another $75 million funding from the satellite radio giant named SiriusXM, who also owns the streaming service Pandora. The funding will be used towards product development and launching new services.
According to various reports, SoundCloud was last valued at $500 million in 2017. SiriusXM portrays the deal as a minority investment that is in part related to the ad partnership that the two already have. In this partnership, Pandora resells SoundCloud’s inventory on its programmatic platform. Both the platforms serve an audience of 100 million unique listeners in the US. SoundCloud has achieved a forward revenue run-rate of $200 million for the first time in the fourth quarter of 2019.
This deal can prove to represent an effective development for SoundCloud and could represent a reversal of fortunes for the business. At the start as an independent startup, despite its surge of viral popularity and credentials with a vast number of creatives utilizing the platform to try out new things Such as releasing their songs and other sound-based work into the world. The SoundCloud that began never indeed managed to overcome the licensing and larger monetization issues that all streaming platforms faced.
In a statement Kerry Trainor, the CEO of SoundCloud said, “SoundCloud’s three consecutive years of excellent financial performance directly reflect the success of our creator-led growth strategy. We provide an exciting roadmap focused on deepening the connections between creators and listeners that fuel creator discovery, career growth and the evolution of music culture on SoundCloud. We’ve built a great relationship with SiriusXM through our highly successful Pandora ad sales agreement. Their investment gives us added capital flexibility to accelerate our vision and take advantage of strategic opportunities as they arise.”
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