Music hosting biz SoundCloud, having just axed 40 per cent of its staff, is now trying to ward off rumors that it will go broke in less than two months.
The song-sharing service was rumored to be in crisis mode and had to shut its doors, with just 50 days of funding left before it ran out of cash. A spokesperson insisted Thursday, however, that this is not the case, and that following last week's layoffs, SoundCloud is going to be able to turn a profit soon.
[...] This comes as SoundCloud struggles to get its advertising and subscription revenues up high enough to push the music-sharing service into the black. Since 2008, the company has relied on VC funding to stay afloat and, after nine years, is still trying to turn a profit.
https://www.theregister.co.uk/2017/07/13/soundcloud_insists_not_dying/
Previously:
SoundCloud is Cutting Nearly 40 Percent of its Staff
(Score: 3, Interesting) by kaszz on Saturday July 15 2017, @08:25AM (2 children)
Users are all to well aware of not-your-computer-syndrome *zap*. So it will be very hard to tell people that all is good when the signs point far in the opposite direction. And burning VC capital 2008-2017, nine years without a profit. What makes VCs think that they will turn a profit?
Almost like the company had some other purpose like finding talent before anyone else does or so..
Fuckedcompany will probably make an exception and take a new contestant. ;-)
Trust, hard to get - Easy to loose.
(Score: 2) by lx on Saturday July 15 2017, @09:41AM
The most probable exit strategy is being bought out by Spotify, Apple Music or similar.
Spotify is still not financially sound so let's all keep an eye on that big mountain of cash Apple has stored in the Cayman Islands and try not to drool too much.
(Score: 2, Touché) by fustakrakich on Saturday July 15 2017, @03:06PM
What makes VCs think that they will turn a profit?
What makes you think they want to 'turn a profit' [wikipedia.org]?
La politica e i criminali sono la stessa cosa..