SoundCloud has today announced that it has secured a $75 million investment from audio entertainment titan, SiriusXM Holdings. The deal gives SiriusXM a minority stake in the company as well as two seats on the board.
Just last year, SiriusXM acquired Pandora, an American music streaming platform. The combined audience of SoundCloud and Pandora will amass over 100 million unique listeners. SoundCloud has said it will use this investment to “accelerate its product development and enhance the services that fuel its global community of creators and listeners”. It has been reported by Music Business Worldwide that in 2019 SoundCloud exceeded a 12-month revenue of over $200m for the first time in history.
“SoundCloud’s three consecutive years of strong financial performance directly reflect the success of our creator-led growth strategy,” said Kerry Trainor, Chief Executive Officer of SoundCloud. “We have an exciting roadmap focused on deepening the connections between creators and listeners that fuel creator discovery, career growth and the evolution of music culture on SoundCloud.”
The company added, “many of the most buzzed-about artists shaping music today – including Billie Eilish, Post Malone, Bad Bunny, Khalid, Lil Tecca, and more – started their careers first on SoundCloud.”
Although SoundCloud has faced somewhat choppy waters over its lifetime, it has been consistently supported by investors. Financial backing from Kerry Trainor and Raine Group brought it back from the brink of collapse in 2017, and this new investment from SiriusXM Holdings could continue its success.