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In the time since this article was written Chance the Rapper tweeted[0]: Just had a very fruitful call with Alex Ljung. @SoundCloud is here to stay. About

In the time since this article was written Chance the Rapper tweeted[0]: Just had a very fruitful call with Alex Ljung. @SoundCloud is here to stay. About an hour later SoundCloud tweeted[1]: *airhorn* Spread the word: your music isn’t going anywhere. Neither are we. So it seems things have changed? I don't know much about Chance the Rappers financials but perhaps he is buying SoundCloud or investing in it? It will be interesting to see what happens. [0] https://twitter.com/chancetherapper/status/885921220759355397 https://twitter.com/chancetherapper/status/88592122075935539... [1] https://twitter.com/SoundCloud/status/885940178292023298 https://twitter.com/SoundCloud/status/885940178292023298

kogepathic 9y ago
> About an hour later SoundCloud tweeted Of course they are going to downplay this news. If they are having money issues and are seeking additional investment, the last thing they want is for a story like this to be in the headlines. It gives their potential investors even more leverage, because if they don't have a successful funding round they're done. It also makes it harder to convince investors to fund them, because no one is interested in funding a service which is losing money and doesn't have good growth numbers. So these tweets mean nothing. It's completely normal for a company to deny reports of financial difficulty because to do anything else would just worsen the situation. My rule has always been: look at how the company acts, not how they talk. SoundCloud just abruptly cut two major offices and 40% of staff. Does that sound like a healthy, growing company?
- avarun 9y ago
  None of that has anything to do with a surprise acquisition/funding offer from Chance the Rapper. Why are you downplaying Chance's tweet?
sghi 9y ago
I love Chance, but I can't imagine that he's got the net worth already himself to buy SoundCloud / make a meaningful investment - maybe he has contacts who do or could help an investment group, but I think it might be a bit fanciful to say that Chance by himself can save SoundCloud. http://collegecandy.com/2017/06/05/chance-the-rapper-net-worth-how-much-is-chance-worth-right-now-salary-contract/ http://collegecandy.com/2017/06/05/chance-the-rapper-net-wor... https://www.digitalmusicnews.com/2017/03/13/soundcloud-valuation-drops/ https://www.digitalmusicnews.com/2017/03/13/soundcloud-valua...

kogepathic 9y ago

> About an hour later SoundCloud tweeted Of course they are going to downplay this news. If they are having money issues and are seeking additional investment, the last thing they want is for a story like this to be in the headlines. It gives their potential investors even more leverage, because if they don't have a successful funding round they're done. It also makes it harder to convince investors to fund them, because no one is interested in funding a service which is losing money and doesn't have good growth numbers. So these tweets mean nothing. It's completely normal for a company to deny reports of financial difficulty because to do anything else would just worsen the situation. My rule has always been: look at how the company acts, not how they talk. SoundCloud just abruptly cut two major offices and 40% of staff. Does that sound like a healthy, growing company?

avarun 9y ago
None of that has anything to do with a surprise acquisition/funding offer from Chance the Rapper. Why are you downplaying Chance's tweet?

sghi 9y ago

I love Chance, but I can't imagine that he's got the net worth already himself to buy SoundCloud / make a meaningful investment - maybe he has contacts who do or could help an investment group, but I think it might be a bit fanciful to say that Chance by himself can save SoundCloud. http://collegecandy.com/2017/06/05/chance-the-rapper-net-worth-how-much-is-chance-worth-right-now-salary-contract/ http://collegecandy.com/2017/06/05/chance-the-rapper-net-wor... https://www.digitalmusicnews.com/2017/03/13/soundcloud-valuation-drops/ https://www.digitalmusicnews.com/2017/03/13/soundcloud-valua...