×
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.

Popular on Variety

More Digital

  • Gabrielle Carteris

    SAG-AFTRA Urges Gavin Newsom to Sign Law Punishing 'Deep Fake' Videos

    SAG-AFTRA National Executive Director David White is urging Gov. Gavin Newsom to sign legislation that institutes penalties for nonconsensual digital sexually explicit videos, also known as “deep fakes.” The legislation, Assembly Bill 602, targets companies and individuals who create and distribute the videos in California without the consent of the individual being depicted. “We urge Gov. [...]

  • Facebook Portal logo

    Facebook Is Launching a Portal TV Device: Here’s What We Know

    Facebook is getting ready to launch a TV streaming device in time for the holiday season, Variety has been able to confirm with multiple sources familiar with the company’s plans. The new streaming hardware will be part of the company’s Portal family of devices, featuring a camera, and combining video chatting with TV viewing and [...]

  • MoviePass card

    MoviePass Shuts Down, With Parent Company Citing Failure to Raise Funds

    MoviePass, the long-struggling theater subscription service, finally appears to be down for the count. On Friday, MoviePass notified remaining subscribers that it would be shutting down the service effective Sept. 14, 2019, because “its efforts to recapitalize MoviePass have not been successful to date,” parent company Helios and Matheson Analytics announced. “The company is continuing [...]

  • Disney Plus - Full Lineup

    How to Browse the Disney Plus Catalog the Company Is Testing in the Netherlands

    Disney began testing its Disney Plus streaming service in the Netherlands this week. Consumers in the U.S. will have to wait until November 12 to get access to the service, but European streaming aggregator JustWatch already makes it possible to browse the catalog available during this beta test. JustWatch is one of a number of [...]

  • JoJo Siwa'The Angry Birds Movie 2'

    Nickelodeon Star JoJo Siwa Gets Her Own Dance-Tour Mobile Game (EXCLUSIVE)

    Fans of JoJo Siwa will be able to join the teen influencer’s dance squad on stage — virtually — in a new mobile game. In “JoJo Siwa — Live to Dance,” players will become part of the Nickelodon and YouTube star’s worldwide tour on her professional dance team and experience what it’s like to be [...]

More From Our Brands

Access exclusive content