SoundCloud is losing money
SoundCloud introduced its online service ( named as “Go” ), which operates on a subscription basis to compete with apps like Spotify in March 2016. In this process, the company also increased its incomes. However, according to The New York Times, if the new investor does not find SoundCloud by the end of the year, they might suffer from financial difficulties.
MusicBusiness Worldwide reported that SoundCloud lost $ 52 million in 2015. The release of Go has allowed the company to increase its revenue. Despite this increase, sales gossip for the company was on the agenda all year round.
In September, Spotify had been arguing that they could buy SoundCloud for $ 1 billion. However, Spotify gave up on this purchase because of the public offer. Recently, it was suggested that Google could offer $ 500 million. In the course of about three months passed, it was noticed that the cut-off value was reduced by half.
Current findings are creating a distressing future for the company. CEO Alex Ljung aims to change this situation with higher segment services. The company also plans to relax with financial investors. A new investment is said to be the only solution the company can keep up. The company’s battle for 175 million users is likely to be one of the events to be watched with interest in 2017.