Soundcloud is saved after securing £135 million in investment

Soundcloud will continue running online after securing a reported $170 million (£135m) in investment.

The music streaming service, which is based in Berlin, faced closure if the new funding was not approved by last Friday (August 11).

"Soundcloud is here to stay,” said the company's chairman Alexander Ljung, who as part of the deal will step down as chief executive.

Soundcloud - which reportedly has 40 million users - is particularly popular with emerging artists, who post new tracks, remixes and mixtapes on the platform. Worried users had been backing up their Soundcloud uploads in recent weeks, concerned the site would go offline.

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In July, Soundcloud laid off 40% of its workforce, a total of 173 people. But in a blog post last week, Ljung said "this financing means Soundcloud remains strong and independent."

"Over the last few weeks, I’ve been moved by the outpouring of commentary around Soundcloud’s unique and crucial role in driving what global culture is today (and what it will become tomorrow).

"You’ve told me how, without Soundcloud, there would be a giant gaping void in today’s world of music. We can’t have that, and I’m happy to once again say that won’t be happening.”

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Mr Ljung will be replaced as chief executive by Kerry Trainor, former head of video-sharing site Vimeo. Mike Weissman, also from Vimeo, will become Soundcloud’s chief operating officer.

Valued three years ago at $700m, Soundcloud's vaulation has dropped considerably since, particularly since acquisition talks with Spotify failed to materialise. 

MORE: Spotify agrees deal with Universal Music Group to window releases on its premium service

Article image: Rex