Who Really Owns SoundCloud? | MUSIK !D TV NEWS
Who will eventually own SoundCloud?
We might have celebrated too soon when we found out that the streaming service is negotiating a potential deal with Raine Group and Temasek. So what is the issue? Industry insiders believe that partnering with investment firms will squeeze the magic out of the streaming service that many music connoisseurs have grown to love.
According to Music Business Worldwide, a source close to the company’s situation said:
“SoundCloud plays a unique role in the industry, and it’s a great shame that it’s [in this financial state]. It’s not like Private Equity will be looking at this deal as a way to contribute to the music industry; they’re unlikely to be thinking about how they can serve artists and songwriters.[This investment] is a shot of steroids in order to make some quick money – it’s not about the long-term health of the music business.”
Music Business Worldwide has interesting theories on where SoundCloud could go.
One idea: last year, Temasek teamed with GIC to invest more than $1bn in China’s e-commerce giant Alibaba, which has huge ambitions as a player in the global music space.
Another: Temasek has co-invested in no less than three businesses with Tencent – the $250bn-valued Chinese giant which has now signed exclusive licensing lock-downs with all three majors in its home territory.
So what do you think - Do you think SoundCloud will change once they acquire new investors? Who do you think SoundCloud should partner with to survive?
Let us know in the comments below.