According to the reports, Raine Group and Temasek Holdings, the Singaporean state investment fund, (two of SoundCloud’s shareholders) have begun interviewing investment banks, related to a prospective auction of the company. They are preparing for a sale that could grab upwards of $1bn.

Raine and Temasek acquired stakes in SoundCloud in August 2017, in a majority-takeover worth $170 million. The deal saw the streaming company valued at around $300 million. Back then the business was reportedly on the brink of collapse. It had struggled to monetise its business model in an era of rapidly shifting economics in the global music industry.

Eliah Seton was named CEO of SoundCloud in March of last year. Seton joined SoundCloud as its global President in April 2021, after following a decade-plus post at Warner Music Group (WMG).

In May of last year, SoundCloud announced it was laying off 8% of its global workforce, affecting roughly 40 employees.

At the time, Eliah Seton said: “This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year. In doing so, we are securing the company’s future for the millions of artists who rely on us for their living and their self-expression, and the millions of fans who come to SoundCloud for the joy of music.”

As of today (January 8), more than 40 million artists are active on the platform, and a total of 320 million songs have been released on the service since it launched over 15 years ago. First emerging back in 2007, the service has acted as a home for many artists – allowing them to publish their work online and direct listeners to their respective pages. Curious to see if and how this sale plays out. We’ll keep you updated!