SoundCloud spent years negotiating with record labels to build a $9.99 per month subscription service to match Spotify and Apple, but the resulting product hasn't gained traction.
Embattled streaming service SoundCloud has been saved from closure by a last-minute investment of $US170 million (about $222 million) in a deal that will also see chairman Alexander Ljung step down from his role as chief executive.
However, the new round of investment - which includes contributions from NY financiers The Raine Group and Singaporean company Temasek - represents the largest funding boost in the company's history, and should at least alleviate some of its woes as it looks for more ways to monetise its 40 million-strong user base, Ljung said in a statement.
As the ink on this deal sets, there's no denying that all eyes will be on SoundCloud in the coming months to see how it goes.
"The core of our company is the creators", said Ljung, who is becoming chairman of SoundCloud. Trainor said SoundCloud will continue to offer the suscriptions, but that it won't be the central focus of the company.
"If I could show to you the number of people who have been calling us, expressing fear about it going away, you would be shocked", said Davis, who will join SoundCloud's board.
Nevertheless, the investments from the Raine Group and Temasek mean SoundCloud will stay independent.
Ljung declined to talk about contact from musicians throughout SoundCloud's "death watch".
The decision to lay off so many talented colleagues was "very painful", Ljung said, but that it was the right thing to do to ensure the future independence of SoundCloud.
"There is only one SoundCloud". "I'm really excited about the next decade".