It’s D-Day. No, we didn’t invade North Korea nor North Korea invade us. This is something more grave. SoundCloud’s life support may be over in as little then 24 hours.
In our previous story, we wrote that SoundCloud was saved by two angel investors (Raine Group and Temasek). While that is true, a new report states that those new investors will need to be approved by the older investors. This decision will be held on Friday, August 11. While that may sound like a no-brainer, it is far from guaranteed that the old investors will approve.
One reason why this deal may not be approved is due to preferential treatment. The older investors would see a major decrease in liquidity preference as well.
Current SoundCloud CEO Alex Ljung is imploring a ‘yes’ vote. However, the irony is that Ljung would more than likely be fired.
Between the millions of dollars gone and SoundsCloud’s inability to compete against the Spotify juggernaut, we are now left with a gloomy decision overhead and the reality that even if this deal passes, SoundCloud will never be what it once was.