SoundCloud, the music streaming company that has been described as the “YouTube of audio” because of its profusion of user-generated content, has some big, strategic investment news today. The company has raised $75 million in funding from satellite radio giant SiriusXM, owner of streaming giant Pandora, which has an ad partnership with SoundCloud.
The funding will be used towards product development and launching new services, the companies said in a statement.
The deal with SiriusXM is a positive development for SoundCloud and could represent a reversal of fortunes for the business
It’s a tempting thought to wonder if this could convert into an acquisition of SoundCloud by SiriusXM. Indeed, it does provide a complement to Pandora and potentially fills a gap both for international audience — over 200 million tracks from 25 million creators with listeners in 190 countries — and also more original content. Those who have used the platform to debut original music include Billie Eilish, Post Malone, Bad Bunny, Khalid, and Lil Tecca.
No word on any exits in today’s announcement, of course, but what we can see is that SoundCloud has bought more time, and has more strategic buy-in now, for its future.