In 2014, SoundCloud was valued at $700 million. But, now the company is reportedly struggling to make ends meet.
SoundsCloud is reportedly looking for businesses to invest, or someone to acquire the company, according to a Recode report. Sources close to the streaming music service report trying to raise more money to support the business. Also, Recode reports that it has talked to potential buyers including Spotify, without closing a deal. Also, the company has been trying to raise more than $100 million since last summer.
Now, the company has reached a point where they may sell for less than what they thought it was worth three years ago. Moreover, the company is reportedly attempting to sell for $250 million.
That said, SoundCloud is struggling to find businesses interested in investing in the streaming music company. While the music industry has changed over the years, more people are willing to buy streaming music accounts including Spotify, which currently has more than 50 million paying subscribers around the world.
To boost their revenue, SoundCloud has added a paid subscription model to their free service, which may not have been very successful. Last year, SoundCloud released a $10-a-month service. The company argued that sales would grow by 250% this year thanks to their new service.
In 2014, investors found SoundCloud to be worth $700 million after the company obtained a $70 million Twitter investment. The website claims they have 175 million unique users, but SoundCloud has not updated their numbers in the past three years.