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The internet has been on fire today about the demise of Soundcloud. Every blog has its own catchy tagline to boost those views and shares but it’s all FAKE NEWS  , something the world has been overcome with in all aspects of media.What started this fiasco was initially on July 6th there were layoffs of 40% of the employees according to Alex Ljung the company’s co founder and CEO  “We need to ensure our path to long-term, independent success,”. The follow up is what changed everything into the music industry’s equivalent of the current political news landscape.

Supposedly some of the layoffs, only named as “sources” said the company is out of money and can only run another 50 days. There are a lot of people out of a job and plenty with an axe to grind with their former employer. The problem with this story is Soundcloud responded to this matter and confirmed this was false.
The statement is as follows
There are a number of inaccuracies within the TechCrunch article. They seem to stem from a misinterpretation of information by one or two laid off employees during a recent all hands meeting.

Due to the extensive number of inaccuracies, we will only comment regarding funding and layoffs.To clarify, SoundCloud is fully funded into the fourth quarter. We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability.

In terms of layoffs, it is our policy not to discuss individual employee cases, but we can share we continue to work with all employees who were let go to support them during this transition, with employment and financial assistance.

There you have it from the horses mouth, now you may choose not to believe them but that has no bearing on Soundcloud’s future. It is a crown jewel in the music industry’s battle royale for dominance and a huge puzzle piece for many of the players. Spotify , Apple, google and twitter have all expressed and been reported to be interested in the company. The layoffs and financial troubles just point that it is the right time for them to be taken over by a bigger company and of course keep running, while most likely becoming a much improved product. 

Now lets say the co-founders want to keep the company? well they haven’t had any problems securing loans before with companies like twitter and most recently kraos capital. There is so much value in this company that they are receiving loans knowing bankruptcy is an unlikely outcome . Now that they have a leaner workforce with the right strategy for profitability someone may take a chance on getting a great deal on part of one of the music industry’s biggest portals. 
Alas,  music industry journalism has become just like most of politics. FAKE NEWS. 

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