×
You will be redirected back to your article in seconds

SoundCloud Has Raised $70 Million in Debt Funding

Berlin-based music streaming service SoundCloud has been tossed another lifeline: SoundCloud has raised $70 million in debt funding from Ares Capital, Kreos Capital and Davidson Technology earlier this month. The funding was first reported by Business Insider, and has since been confirmed by the company.

“This new funding will enable SoundCloud to strategically grow our technology and personnel resources to fuel our expected 2.5 times year-over-year growth in 2017,” the company said in a statement.

The new funding comes after reports surfaced earlier this month that SoundCloud was considering a fire-sale exit because it hadn’t been able to raise the necessary money to continue its operations.

SoundCloud responded to these reports by acknowledging the need for new capital, but denied that it was getting ready to sell for pennies on the dollar. “We are actively speaking with a variety of potential investors and other strategic partners,” SoundCloud told Variety at the time.

SoundCloud had raised $70 million from Twitter in June of 2016, after raising another $35 million of debt financing in January of last year.

The new debt financing doesn’t necessarily mean that SoundCloud is in the clear — creditors expect to be repaid, after all. However, it should give the company some capital to keep going, and possibly shore up its numbers in order to get a better deal if and when it finds an acquirer.

More Digital

  • Niantic's Harry Potter: Wizards Unite Game

    ‘Harry Potter: Wizards Unite’ to Launch This Week

    “Pokemon Go” maker Niantic is getting ready to launch its next big game: “Harry Potter: Wizards Unite” is set to launch in June 21, the company revealed in a tweet this week. The worldwide launch of Harry Potter: Wizards Unite begins this Friday, June 21! Keep your eyes peeled and wand ready for more information [...]

  • google podcast creator program

    Google, PRX Unveil Second Slate of Their Podcasts Creator Program (EXCLUSIVE)

    Roughly a year after first unveiling its podcasts creator program, Google is renewing its commitment to train budding podcasters. Together with public radio and podcast distributor PRX, Google has chosen 6 podcasters from around the world to participate in the next round of the creator program. The podcasts included in the second cohort are “37 [...]

  • Camila Cabello

    Camila Cabello Reveals Podcast Obsessions, Teases New Album at Cannes Lions

    Camila Cabello was the featured speaker at a Tuesday afternoon panel at Cannes Lions, the annual gathering of marketing, design and entertainment professionals in the south of France. Joined by Spotify chief content officer Dawn Ostroff, the talk, moderated by Variety editor Shirley Halperin, was centered around the theme of the golden age of sound [...]

  • Meg Whitman and Jeffrey Katzenberg

    Quibi Has Already Booked $100 Million in Ad Sales, Jeffrey Katzenberg and Meg Whitman Say

    Quibi, the ambitious short-form video venture from Jeffrey Katzenberg and CEO Meg Whitman, has sold $100 million in upfront ad inventory with six advertisers ahead of its April 2020 debut. Advertisers that have committed ad spending to Quibi include Google, Procter & Gamble, PepsiCo, Walmart, Progressive and AB InBev, according to the company. The $100 [...]

  • China's iQIYI Signs Content, Channel Pact

    China's iQIYI Signs Content, Channel Pact With Malaysia's Astro

    Astro Malaysia, Malaysia’s leading pay-TV operator, has struck a strategic agreement with Chinese streaming platform iQIYI. Astro obtains the exclusive rights to deliver iQIYI content on TV, on-demand and via OTT in Malaysia. It will launch the first iQIYI-branded channel comprising iQIYI’s extensive slate of original content from drama to variety shows and movies. Astro [...]

  • Toy Story 4 Forky

    ‘Toy Story 4’ Tops Studios’ TV Ad Spending

    In this week’s edition of the Variety Movie Commercial Tracker, powered by TV ad measurement and attribution company iSpot.tv, Disney Pixar claims the top spot in spending with “Toy Story 4.” Ads placed for the animated film had an estimated media value of $5.53 million through Sunday for 1,073 national ad airings on 38 networks. [...]

  • Murder Mystery

    Netflix Reveals Record-Breaking Stats for Sandler-Aniston 'Murder Mystery' Flick

    “Murder Mystery,” the latest Adam Sandler film to debut on Netflix, broke viewing records on the streaming service, the company revealed Tuesday. The film, which is co-headlined by Jennifer Aniston, was seen by close to 30.9 million households in its first 3 days, according to a tweet sent out Tuesday afternoon. 🚨ADAM SANDLER AND JENNIFER [...]

More From Our Brands

Access exclusive content