(AllHipHop News) SoundCloud is still attempting to find ways to create a profitable business model.
After an article by TechCrunch suggested the streaming service only had enough funds to survive through the fourth quarter, Buzzfeed published an in-depth exposé on the series of missteps made by the company.
“No one comes to SoundCloud to listen to The Beatles’ catalogue,” one investor is quoted telling Buzzfeed in response to the launch of SC’s $9.99/month subscription service. “SoundCloud did exactly what its users didn’t want it to do.”
Billboard is now reporting the struggling audio platform could be getting another needed investment.
The Raine Group – a global boutique merchant bank – is said to be in talks with SoundCloud about providing capital and expertise in order to turn things around at the company.
Vice Media, Imagine Entertainment, Cheddar, C3 Presents, Draft Kings, and Zumba Fitness are included in The Raine Group’s current portfolio.
Soundcloud executives have expressed interest in selling the service in the past.
Twitter considered acquiring SoundCloud in 2014, but the social media site walked away from the deal because of the $2 billion asking price.
SoundCloud reportedly lost $54 million in 2015 before securing a $35 million round of debt financing in early 2016.
By that fall, Spotify expressed interest in buying the service for a reported $600 million.
Those talks apparently collapsed because Spotify was concerned about making the transaction so close to its initial public offering.
Then news broke in July that Soundcloud was forced to lay off 40% of its workforce.
“We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability,” read a statement from the Berlin-based company. “In terms of layoffs, it is our policy not to discuss individual employee cases, but we can share we continue to work with all employees who were let go to support them during this transition, with employment and financial assistance.”
