SoundCloud has secured a "significant investment" from two different companies, allowing the music streaming platform to continue operations, SoundCloud said in a statement on Friday. The news follows reports that SoundCloud's future hung in the balance and would be determined by a vote from shareholders on a new investment plan.
The two companies backing the new round of investment are The Raine Group, an international merchant bank, and Temasek, a Singapore-based investment company. "The investment will ensure a strong, independent future for SoundCloud, funding deeper development and marketing of its core tools used by millions of audio creators," the statement reads.
Under the new investment plan former CEO and founder Alex Ljung has stepped down and will now serve as chairman of the board. Kerry Trainor, the former CEO of Vimeo will replace Ljung.
In July, SoundCloud laid off 40 percent of its employees and closed offices in San Francisco and London. The company was reportedly cutting costs to continue operating and was in danger of going under before the end of the quarter, according to internal communications obtained by TechCrunch.
The investment plan secures $170 million in funds for the company, which is now valued at $150 million. Last year, an investment round had placed the company's value around $700 million.
A representative for SoundCloud was not immediately available for comment.