SoundCloud may be in trouble again, seriously this time.
A few weeks ago a rumor started that SoundCloud would be shutting down soon but, Chicago native Chance The Rapper shut the rumor down and said SoundCloud was here to stay.
Recent reports stated that SoundCloud doesn’t have enough funding to make it to the next quarter. Axios reports that the company is asking shareholders to consider a rescue investment plan before the end of Friday.
In a memo sent to shareholders earlier this week, and obtained by Axios, the company outlined a proposal that requires shareholders to accept or reject a reorganization plan, which seeks an additional $170 million in funding and values the company at $150 million. If the proposal is rejected, CEO Alexander Ljung said that the company would not be able “to continue as a going concern.”
We will keep you updated on SoundCloud and what their future holds.