Following rumors of a $1 billion+ potential sale, SoundCloud CFO Drew Wilson is exiting the company. Here’s what we know about this development.
Over the weekend a report surfaced in Sky News suggesting the music streaming app was holding talks with investment banks about a prospective auction of the company. There were no clues on who could be interesting, but it’s worth noting that Raine and Temasek are majority owners, while SiriusXM has invested $75 million in the platform.
Outside of listing, ‘insider’ sources, Sky has offered no other sources for the projected sale price. But now, SoundCloud insiders have told Digital Music News that CEO Eliah Seton announced the departure of the CFO in an internal memo on January 8. Drew Wilson joined the company in 2021.
SoundCloud has seen a high volume of executive turnovers in the last few years. In 2022, the company laid off 8% of its workforce in an attempt to cut costs. One source speaking anonymously to DMN said, “Eliah’s best comment I ever heard was him saying people on the board have been around longer at the company than anyone in leadership and most of the staff.”
SoundCloud CEO Eliah Seton has been credited with helping the company right itself, though profitability has been elusive. Even rival Spotify has struggled with profitability after its massive investment in the podcast format. Following shake-ups, both companies appear to be responding to shifts in the investor landscape—seeking to shore up risk as investment winds change.
While SoundCloud has a healthy fanbase and has helped inspire new musical movements, including ‘SoundCloud Rap’—it’s unclear if the platform could fetch that rumored $1 billion price tag. 2024 promises to be an interesting year in music as Sky suggests a potential sale may not happen until a few months into the year. For what it’s worth, SoundCloud itself has been mum on the rumors, despite reaching out for comment.