SoundCloud is up for sale to prospective buyers with a billion dollar price tag, a source tells Billboard. The potential sale comes a month after the streaming service raised $100 million in a funding round led by a $70 million investment from Twitter, and four months after the launch of its new paid subscription service, SoundCloud Go. The story was first reported by Bloomberg.
It’s been a big year for the German company — in addition to its foray into the paid streaming market, it finally signed a deal with major label holdout Sony Music Entertainment, the final piece in its catalog puzzle following prior agreements with Universal Music Group, Warner Music Group and Merlin. That paved the way for Go’s rollout, which will help legitimize the service moving forward for its 175 million users, many of which come from the dance music and DJ communities.
Go should help SoundCloud financially, provided it can actually convert its freemium users into paid subscribers. Earlier this year, the company released its financials from 2014 which showed a service growing rapidly and burning through piles of cash, spending $63.8 million to generate $19.7 million in revenue. Since then, SoundCloud raised $77 million in funding in 2015, as well as the $100 million funding round in June which valued the company at $700 million, according to Bloomberg.
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