Sirius XM Holdings is investing $75 million in Soundcloud and will receive a minority share in the music-sharing company, as well as two board seats, the two companies shared on Tuesday morning. The size of the minority stake was not disclosed.
The investment comes a few years after Soundcloud was struggling to stay afloat, with the Berlin-based company letting go of about 40% of its employees in 2017. It’s rebounded since then, after receiving $170 million in funding from investors like Raine Group. The company — best known for hosting free music from up-and-coming artists, despite also offering a $9.99 per month subscription –said it’s on track to bring in $200 million in sales this year.
Soundcloud, for up to $16 per month, also offers analytics and other services to its uses; “tens of thousands” of people use this service, according to the company. The company has been a launching pad for artists like Billie Eilish, who first gained traction after uploading music to Soundcloud a few years back.
Sirius has already been linked to Soundcloud, with Pandora, one of its companies, working with Soundcloud on advertising. The $75 million investment will be used for product development and to launch new services, according to the companies.
SoundCloud’s three consecutive years of strong financial performance directly reflect the success of our creator-led growth strategy,” Soundcloud CEO Kerry Trainor said in a statement. “We have an exciting roadmap focused on deepening the connections between creators and listeners that fuel creator discovery, career growth and the evolution of music culture on SoundCloud.”