SiriusXM invests $75 million to play a bigger role in SoundCloud

by admin on Feb 13, 2020
Image Source : Sirius XM

In what could be an indication of a more detailed collaboration in the future, SoundCloud has protected a $75 million financial investment from SiriusXM. In exchange for the cash mixture, the streaming business says it provided Sirius a minority risk and also two board seats.

The circumstances bordering this latest financial investment could not be more various than the last time SoundCloud raised money. By its admission, the business was close to the lacking runway in 2017. That July, it reduced 40 percent of its labor force, laying off 173 individuals and folding its San Francisco and also London workplaces as it attempted to lower prices. Later on that same year, SoundCloud safeguarded a $170 million financial investment. Virtually three years later, SoundCloud says it’s moving toward producing more than $200 million in annual revenue. It prepares to use the $75 million to develop new products, in addition to additional construction out the services it currently supplies.

It’s alluring to see the financial investment as the start of a possible procurement. In 2018, SiriusXM acquired Pandora one year after it invested $480 million right into the business. There’s likewise an apparent synergy between the company. SoundCloud, as well as Pandora, already works very closely together to market advertisements in the United States. And by acquiring SoundCloud, Sirius would have much more material to play throughout all of its platforms.

Source: Engadget