Soundcloud is planning to sell about 9-15% to three major labels which include Sony Music, Universal Music, and Warner Music. Not so long ago Twitter was rumored in trying to purchase the company for $2 Billion after the company had raised $60 million from a Series D funding round. With over 250 million listeners per month the company is growing and sooner or later will be bought out. I’m sure Soundcloud would never sell shares of the company but for their users to not be effected by major recording companies suing them they might as well give them a piece of the company to keep them happy. Details of the deal, including licensing rates and each major’s exact ownership percentage were not available.
I really hope this was not decided for quick injection on cash flow. I’ve noticed many complaints regarding DJ mixes takedown due to pseudo copyright infringements. Big labels can’t continue on such scheme as it’s proven to be ineffective and malicious on brand image as well as user experience. I hope they would figure noble approaches to stay profitable without hurting contents on the platform. I believe in Soundcloud and its founders and the future of the company. Best of luck.