The future of SoundCloud, the music streaming platform that gave rise to popular artists like Chance the Rapper and Post Malone, may hinge on a decision that’s set to be made on Friday.
According to Axios, a memo sent to shareholders asks them to accept or reject a reorganization proposal by the end of Friday. If investors accept, $169.5 million will be injected into the company. If it’s rejected, SoundCloud CEO Alexander Ljung suggested that the company would not be able “to continue as a going concern.”
Ljung has warned in the past that without the rescue package, the company won’t have enough money to survive, according to Digital Music News. Earlier this year, SoundCloud laid off about 40 percent of its staff and closed offices in San Francisco and London in July in an effort to become more profitable, according to Bloomberg.
Out of all music streaming services like Spotify, Apple Music and Pandora, SoundCloud actually has the largest listener base with 175 million. However, the company has never quite been able to create a sustainable business plan, according to Axios.
Back in July, Ljung wrote a blog post said that “The music you love on SoundCloud isn’t going away, the music you shared or uploaded isn’t going away, because SoundCloud is not going away. Not in 50 days, not in 80 days or anytime in the foreseeable future. Your music is safe.”
His blog post arose days after reports surfaced that the company would run out of money by the end of Q4, according to TechCrunch. SoundCloud stated that the company is “fully funded into Q4.”
SoundCloud was founded in 2008 and has risen in popularity due to its large community of musicians and podcasters. In 2016, the company raised $70 million from Twitter, according to Variety.