Following news last month that Twitter reached an agreement with SoundCloud for an investment of $70 million, it is now being reported that the music streaming company is seeking a buyer for an estimated $1 billion.
When the Twitter cash infusion story broke mid-June, experts believed that the funding valued SoundCloud at about $700 million — the same value that investors placed on the company in 2014 when it raised $60 million. According to Bloomberg, however, SoundCloud is now looking to sell for $1 billion.
The publication cites “people familiar with the matter,” affirming that SoundCloud’s investors and founders are exploring ways to reach a sale. The business news outlet states that other sources have confirmed SoundCloud’s interest in finding a buyer, reporting that the music company has been having difficulties finding someone willing to pay $1 billion for the business although talks of a sale have been ongoing now for some time.
Is the streaming platform really worth $1 billion and will they find a buyer willing to match that evaluation? The company reported $44 million losses for 2014, specifying that “in the three years from 2012-2014, SoundCloud lost almost €75m – but only brought in €37m in income.”
A SoundCloud representative declined to comment.
