SiriusXM invests $75 million to play a bigger role in SoundCloud

The circumstances surrounding this newest financial investment couldn’t be more various than the last time SoundCloud raised money. By its own admission, the business was close to running out of runway in 2017. That July, it cut 40 percent of its labor force, laying off 173 people and shutting down its San Francisco and London offices as it attempted to cut expenses. Later on that very same year, SoundCloud protected a $170 million financial investment. Nearly 3 years later on, SoundCloud says it’s approaching creating more than $200 million in annual profits. It plans to utilize the $75 million to create new products, in addition to further build out the services it already provides.

It’s appealing to see the investment as the start to a possible acquisition. In 2018, SiriusXM purchased Pandora one year after it invested$480 million into the company. There’s likewise an obvious synergy in between the companies. SoundCloud and Pandora already work closely together to sell ads in the United States. And by acquiring SoundCloud, Sirius would have even more content to play throughout all of its platforms.