In July, after music streaming service SoundCloud fired a good chunk of its staff in an attempt to cut costs, reports came out that suggested the company was basically bleeding money and would be totally tapped out in a matter of months—reports that the company vehemently denied, for the record. Now, Variety is reporting that SoundCloud has just received a massive, life-saving investment of $170 million a “global merchant bank” called The Raine Group and a Singapore-based investment company called Temasek.
As part of this new investment, former Vimeo executives Kerry Trainor and Michael Weissman will be stepping in as the new CEO and COO (respectively), while SoundCloud co-founder Alexander Ljung will step down as CEO and become chairman of the board, and other co-founder Eric Wahlfross will stay on as chief product officer.
In a statement, SoundCloud said that this new investment will “ensure a strong, independent future” for the company, while also “funding deeper development and marketing of its core tools used by millions of audio creators.”