SoundCloud Delivers Massive Blow To Twitter! | MUSIK !D TV NEWS
On February 23rd, Twitter announced that they lost nearly $70 million they invested in SoundCloud, $66.4 million to be exact. Why did this happen?
In early 2017, SoundCloud was running low on money and was unable to increase their finances. In August 2017, SoundCloud established a deal from the Raine Group and Singapore’s Temasek, plus a $170 million fund. Unfortunately, they have to let go of their original investors and CEO, Alexander Ljung.
SoundCloud’s profit was $700 million when Twitter made the investment. Before the deal with Raine and Temasek, the profit declined to $150 million. Twitter’s annual report stated: “the carrying value of this investment was not expected to be recoverable within a reasonable period of time.”
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