SoundCloud has today (August 11) agreed to take on $169.5m funding from global merchant bank The Raine Group and Singapore-headquartered investment company Temasek.
As previously reported, the deal is understood to jointly deliver the two parties a majority stake in the company.
Their first act is a changing of the guard: veteran digital media exec Kerry Trainor has been named SoundCloud’s new CEO, with Michael Weissman joining the company as Chief Operating Officer.
MBW first reported Trainor’s arrival yesterday.
Outgoing CEO and SoundCloud co-founder Alexander Ljung takes up the position of Chairman of the company’s board. His fellow co-founder Eric Wahlforss is named Chief Product Officer.
Trainor has 20 years of experience working with music and video streaming products, most recently as Chief Executive Officer of Vimeo where he led the video platform through its largest expansion in usage, revenue and shareholder value. Michael Weissman worked closely with Trainor at Vimeo.
In a media release, SoundCloud said the investment ‘will ensure a strong, independent future for SoundCloud, funding deeper development and marketing of its core tools used by millions of audio creators’.
“Now in its 10th year, I’m proud to say SoundCloud stands as an indispensable part of global music culture.”
Alexander Ljung said, “Now in its 10th year, I’m proud to say SoundCloud stands as an indispensable part of global music culture. I look forward to fully dedicating my time to leading the board and helping drive SoundCloud’s long term strategic vision, and forging strategic partnerships and connections with industry partners and our one-of-a-kind creative community.
“With Kerry’s love of music and sharp business acumen, I know SoundCloud is positioned for continued success for many years to come.”
Kerry Trainor commented: “As a huge fan of the SoundCloud platform since its founding, I deeply admire what Alex and Eric have built.
“There is only one SoundCloud and its importance to creators and music culture is undeniable.
“I’m very excited to join this talented team and build the next chapter of growth around SoundCloud’s mission to empower audio creators. I look forward to sharing more about our plan and path forward in the months ahead.”
“There is only one SoundCloud and its importance to creators and music culture is undeniable.”
Kerry Trainor, SoundCloud
The Raine Group’s past investments include Vice Media, Imagine Entertainment, Matt Stone and Trey Parker’s Important Studios, fantasy sports operator Draft Kings and C3 Presents, owner and operator of music festivals Lollapalooza and Austin City Limits.
Fred Davis, who has a long history working with artists and digital content platforms, first as a music industry attorney and now as a partner at Raine, will join the SoundCloud board.
Joe Puthenveetil, a Vice President at Raine who helps lead Raine’s initiatives in the music space, will also join the SoundCloud board.
“SoundCloud is a unique and essential music platform for new and developing artists,” said Fred Davis, Partner at Raine. “For ten years, SoundCloud has been the birthplace of genre-breaking musical movements in Electronica and Hip Hop.
“We are excited to partner with Temasek on this investment and are confident our involvement can ensure it remains the most artist-friendly music creation and streaming platform in the world.”Music Business Worldwide