SoundCloud has just received $70 million out of a $100 million investment from Twitter. The news comes after the music streaming startup recently attempted to capture a larger share of the music subscription market through their new program SoundCloud Go. In an interview done by Recode Twitter, CEO Jack Dorsey stated that the investment was to “to help support some of our efforts with creators” and that SoundCloud has “been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”
In a statement from a SoundCloud spokesperson on the investment: “We can confirm that Twitter has made an investment in SoundCloud. Both companies facilitate and inspire contemporary culture to happen in real time while reaching millions of people around the world. This investment will enable SoundCloud to remain focused on building value for creators and listeners alike, and to continue the global rollout of many company initiatives such as our recently launched subscription service, SoundCloud Go.”
This investment comes at a time when SoundCloud has been facing cash flow difficulties and receiving backlash for deleting many artist profiles. It is yet to be seen how this investment will be used and this will assist in making SoundCloud profitable again. The investment, however, definitely will breathe new life into this troubled platform.
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[Photo Credit: Tech Crunch]