SoundCloud Avoids Being Shutdown With New Investment, CEO Removal

Audio streaming platform SoundCloud staved off reportedly being shutdown, with an investment from The Raine Group, a global bank, and Temasek, a Singapore-based sovereign wealth fund, and the removal of its chief executive officer. Alongside the investment announcement Friday, Kerry Trainer, formerly chief executive of Vimeo, will become chief executive of SoundCloud, while Alexander Ljung, the current CEO, will step down to become chairman of the board. Michael Weissman, most recently chief operating officer at Vimeo, will be the chief operating officer. Eric Wahlforss, a co-founder of the SoundCloud, will remain with the company as chief product officer. The financial terms of the investment were not disclosed. The investment comes as SoundCloud was reportedly struggling financially, with media reports saying the company could not have continued without the investment. In the press release, SoundCloud said it has a $100 million annual run-rate for 2017.