SoundCloud reportedly gearing up for $1 billion sale

SoundCloud is reportedly going up for sale, with estimates predicting that the site could fetch upwards of £1billion.

News of the sale comes from Sky News, who report that owners Raine Group and Temasek Holdings – the Singaporean state investment fund – have begun interviewing investment banks with a view to auction off the streaming site.

Soundcloud first launched in 2007 and now boasts more than 40million active artists and over 320 million songs. It has long been favoured by artists for its ability to let them publish their own work and allow users to access their individual pages.

But in recent years, the company has faced financial pressure too. In August 2022, it was announced that SoundCloud would be laying off a staggering 20 per cent of its global work force.

“During this difficult time, we are focused on providing the support and resources to those transitioning while reinforcing our commitment to executing our mission to lead what’s next in music,” they said at the time.

According to the latest report, Raine and Temasek “accelerated” the company’s growth after taking control in 2017, at a point when the business was said to be on the edge of collapse.

While providing a home for artists of all genres, SoundCloud has been particularly notable in rap music, even spawning a specific genre named after the streaming site. SoundCloud Rap, as the coined genre became known, is characterised by autotune and heavy distortion – with the likes of Trippie Redd, Lil Yachty and the late Juice WRLD and xxxtentacion all launching their careers off the back of the site.

Soundcloud is yet to comment on news of the proposed sale.