Last week, Music Business Worldwide broke the news that struggling streaming platform SoundCloud had received investments from two investment firms in The Raine Group and Temasek. Yesterday, the new investors delivered an ultimatum regarding the future of the company and it looks like current SoundCloud CEO Alex Ljung has accepted the $169.5 million investment and the leadership reshuffle that comes with it.
As part of that shuffle, former Vimeo CEO Kerry Trainor will be assuming the SoundCloud CEO mantel while current CEO Alex Ljung has been shifted to chairman of the board. Trainor brings with him Michael Weissman, also from Vimeo, to serve as the company’s chief operating offer. SoundCloud co-founder Eric Wahlforss remains in place as the chief product officer.
In addition, Trainor joins the SoundCloud board of directors along with Fred Davis, Raine Group partner, who brings an extensive background in music and tech working with companies such as Spotify, YouTube, Last.fm and Rhapsody, but also from his familiar roots as the son of Clive Davis. Clive Davis has a storied history in the music industry having held plenty of executive posts such as the founder of Arista Records, former CEO of RCA Records, president of Columbia records, and CEO of BMG North America.
The company delivered a public statement earlier today regarding the investment. “The investment will ensure a strong, independent future for SoundCloud, funding deeper development and marketing of its core tools used by millions of audio creators.”
The announcement also revealed that SoundCloud revenue has “more than doubled to a more-than $100m annual run-rate this year,” while its catalogue has now increased to more than 160m tracks.
H/T: SoundCloud