SoundCloud was launched back in 2007, long before music streaming services were popular. As the streaming service became popular, the company started fading due to new competition and is now reportedly running out of money. The company has reportedly been trying to raise over $100 million since last summer, but without success.
SoundCloud’s struggles aren’t really new to us and we have also heard rumours that Spotify was interested in purchasing the service, but a deal could not be reached. A few weeks later, the service launched new plans, but is still trying to sell themselves for as low as $250 million, which is the total investment the company has raised to date.
The upshot, according to people familiar with the company: SoundCloud is now at a point where it may sell for less than the $700 million investors thought it was worth a few years ago. One source thinks it will consider bids, as long as they’re above the total investment it has raised to date — about $250 million.
