While the new investment has resulted in a change in management - and a considerable write down of the digital company's valuation - it will bring to an end weeks of speculation that the end is nigh for all things SoundCloud. The company also announced that former Vimeo executive Kerry Trainer will become the CEO of SoundCloud replacing founder Alexander Ljung.
Despite this downsize, the platform still faced closure before a New York-based merchant bank The Raine Group and a Singapore-based investment company Temasek gave the platform new funding. Michael Weissman, the former chief operating officer at Vimeo, will join SoundCloud in the same role.
SoundCloud fans can hopefully rest easy for a while longer.
"The investment will ensure a strong, independent future for SoundCloud, funding deeper development and marketing of its core tools used by millions of audio creators - musicians, DJs, producers, labels, managers and podcasters", SoundCloud said.
Audio streaming platform SoundCloud has announced it's secured the $169.5m worth of investment it needed to stay online. Says new boss Trainor: "As a huge fan of the SoundCloud platform since its founding, I deeply admire what Alex and Eric have built". A spokeswoman for SoundCloud said last month it remained fully funded into the fourth quarter, while declining to comment on what lay beyond.
Whether or not this detail is compatible with SoundCloud's reputation as an "independent" and artist-driven player in the music streaming space remains to be seen. Ljung will remain in the company as Chairman. Both Trainor and Weissman are Vimeo alumni. Trainor said SoundCloud will continue to offer the suscriptions, but that it won't be the central focus of the company.
SoundCloud last reported about 170 million users and saw significant increases in creator subscriptions, uploads, listening time and listener subscriptions over the past 12 months.