SoundCloud, a site that allows users to listen to music, upload, record and share their created sounds, could be in financial trouble, according to new financial filings. The latest financial report shows a $54 million loss and if the financial troubles continue, the streaming site may run out of money by the end of the year.
SoundCloud and New Subscription Service
SoundCloud, which was founded in 2007, is a popular site for users who want to listen or share their created sounds. The site, which has agreed to deals with many entertainment and record label companies, was recently free but it added a subscription service. Called SoundCloud Go, the subscription costs $10 a month and includes a library with more content.
The streaming site could be in trouble after the loss but there are rumors about an acquisition by search giant Google. SoundCloud has been valued between $700 million and $1 billion and it isn’t the first time that an acquisition has been rumored. Music streaming service Spotify was reportedly interested in acquiring SoundCloud just a few months ago. Spotify and SoundCloud were in talks but in December, it was reported that the two were unable to agree to a deal.
Users and Rumors About Sale
The streaming site has millions of created tracks and users. But it is not yet known how many users are part of the new subscription service. SoundCloud currently has around 175 million users but it has warned that it may have to raise more money this year.
The talks between Spotify and SoundCloud are reportedly over but Google is rumored to be interested in acquiring the popular streaming site. The recent rumors have mentioned that the search giant is interested in buying SoundCloud for $500 million.
What do you think about SoundCloud? Are you using SoundCloud Go? Let us know in the comments.