Broadcasting conglomerate SiriusXM announced in a press release on Tuesday that it has purchased a minority stake in SoundCloud, and two seats on its board, for $75 million.
SoundCloud will use the cash "to accelerate its product development and enhance the services that fuel its global community of creators and listeners," according to the release. "We have an exciting roadmap focused on deepening the connections between creators and listeners that fuel creator discovery, career growth and the evolution of music culture on SoundCloud," SoundCloud CEO Kerry Trainor said.
SiriusXM and SoundCloud previously worked together on an ad partnership last year in which brands were able to purchase SoundCloud's ad inventory through Pandora.
In 2017, SoundCloud received a $170 million rescue investment after a round of layoffs and office closures that left the future of the company in serious jeopardy.