Streaming service SoundCloud secured a new round of funding today that will stave off the once-imminent shutdown of the struggling company. A $169.5 million infusion of cash, from a partnership between “global merchant bank” The Raine Group and “Singapore-headquartered investment company” Temasek, will help to alleviate SoundCloud’s debts, the company announced on their blog.
As part of the deal, SoundCloud has revealed that founder and now-former CEO Alexander Ljung will step aside to make way for new corporate leadership. Former Vimeo CEO Kerry Trainor will take over the CEO role. Additionally, SoundCloud co-founder Eric Wahlforss will move from his role as Chief Operating Officer, ceding the position to Michael Weissman, also of Vimeo. Ljung and Wahlforss will remain with the company as Chairman of the Board and Chief Product Officer, respectively.
In an interview with Billboard, Trainor revealed he hoped to leverage subscription services at Soundcloud into a more lucrative position, much as he’d done during his tenure at Vimeo.
This is all welcome news for the site’s fiercely loyal users and fans. Just one month ago, a leaked recording revealed the company was on track to shut down in 50 days. SoundCloud also laid off 40 percent of its staff.
Read our recent piece about how SoundCloud rap couldn’t keep the struggling platform afloat.