Different sources are reporting that Soundcloud is up for sale and that the asking price is not less than… USD 1 billion. A pretty steep price for a company that so far has failed to make money or to even come up with a plan to eventually do so.
Soundcloud has been struggling for a while now amidst a scene that is dominated by paid streaming services such Spotify and Apple Music. Despite the launch of an ad-free paid subscription service most of their 175 million user base has chosen to stick with the free version. Add to that the so-so reputation with artists and the general public (who hasn’t experienced their harsh takedown policies) and you got yourself a hard sell te make.
A few months ago Yahoo (recently sold to Verizon for 4.8 billion) took a 10 pct stake in SoundCloud for 70 million, putting the total value of the service at 700 million, 300 million shy of the rumored asking price we hear floating around the net today.
We have reported on the downfall of SoundCloud in the past and with this news, it seems that the end of the once so promising service is nearing fast. With Apple Music and Spotify allowing DJ mixes to be streamed in the near future, the chances of SoundCloud finding a business model that earns them money are getting slimmer with every day that passes, and therefore finding a buyer for a business that fails to monetize a 175 million user base but stills values itself at 1 billion would be nothing short of a miracle.