– SWEDEN, Stockholm – SoundCloud has just announced that it has secured $75 million investment from SiriusXM – which acquired another leading music streaming platform, Pandora, last year in a $3.5bn all-stock transaction.
Under the terms of the agreement, SiriusXM has purchased $75 million of securities for a minority investment, and the SoundCloud Board of Directors will expand to include two individuals designated by SiriusXM.
US-based Sirius’s investment in SoundCloud comes three years after the latter company attracted $170m in investment from Raine Group and Temasek – and three weeks after MBW revealed that SoundCloud had posted a $200m annual revenue run-rate in the final months of 2019.
SiriusXM will take a minority stakeholding in SoundCloud as a result of the $75m investment.
SoundCloud says it will use this additional investment to “accelerate its product development and enhance the services that fuel its global community of creators and listeners”.
“SoundCloud’s three consecutive years of strong financial performance directly reflect the success of our creator-led growth strategy,” said Kerry Trainor, CEO, 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.
“We’ve built a great relationship with SiriusXM through our highly successful Pandora ad sales agreement, and their investment gives us added capital flexibility to accelerate our vision and take advantage of strategic opportunities as they arise.”
Jim Meyer, CEO of SiriusXM, said: “SoundCloud’s unique platform serves a vital role in today’s music ecosystem where new artists are discovered and build their fan base, and established artists experiment and connect directly with their fans in highly effective ways.
“We admire SoundCloud’s loyal and growing audience, its offering for creators, and its reputation and popularity in global music communities. We believe this is another opportunity to continue creating value for SiriusXM stockholders by investing in expanding digital audio platforms.”
The minority investment follows a successful ad sales relationship between SoundCloud and Pandora.
The agreement between the two parties, launched in October 2018, enables advertisers to purchase SoundCloud’s U.S. ad inventory directly through Pandora, leveraging the company’s direct sales capabilities, targeting data, and audio programmatic platform.
Together, SoundCloud and Pandora say their combined U.S. audience offering reaches more than 100 million unique listeners, creating “the largest digital audio advertising marketplace”.
SoundCloud points out that “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”.
For more information: https://soundcloud.com
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