SoundCloud reportedly wants to find a buyer
SoundCloud’s paid Go music service is a hot mess between its clunky interface and poor selection, and that may be leading the company to consider some more drastic ways of making money. Bloomberg tipsters claim that SoundCloud’s owners are “exploring strategic options,” including a possible sale at a valuation of $1 billion. The discussions are reportedly still young and might not lead anywhere, but the very possibility that it’s on the table is notable — the company may not be confident that it can profit from its legions of listeners.
The company hasn’t commented so far. Having said this, SoundCloud may face an uphill battle even if it does decide that a sale is the best solution. It’s reportedly having trouble finding buyers that believe it’s worth $1 billion, and even Twitter’s $70 million investment only valued SoundCloud at $700 million. It may have to either be patient or accept that its current offerings don’t command a premium.
Source: Bloomberg
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