SoundCloud stays afloat with emergency investment, as CEO steps aside

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SoundCloud today announced that it has closed the investor round necessary to keep it going for the foreseeable future. As part of the agreement, Alex Ljung will step aside and former Vimeo leader Kerry Trainor will become SoundCloud’s new CEO, with Mike Weissman as COO. Ljung will stay on to “fully focus on the role of the chairman and the long-term.” Though the exact investment number is not mentioned in the announcement, Ljung says it is “the largest financing round in the history of SoundCloud.”

Yesterday, Axios revealed details of a SoundCloud shareholder memo that said the future of the company hinged on a pending reorganization proposal. Though the exact details of that proposal have not been revealed, it appears it was accepted. As part of the new investment, per the memo, SoundCloud’s new and existing investors will receive Series F stock, a special class of common stock that has seniority and preference, while existing Series E investors will have their liquidity preference cut by over 40 percent.

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