Sirius XM takes $75M stake in SoundCloud
Another platform for the satellite radio's portfolio.
SoundCloud has a new major investor.
SoundCloud is the open audio platform known for being the starting point for major music acts such as Post Malone and Travis Scott. The company is now getting a big investment from one of the largest audio tech companies.
Satellite radio company Sirius XM has invested in SoundCloud to the tune of $75 million, SoundCloud said in a press release Tuesday. The investment will go into product development and enhancing SoundCloud's services. The deal builds on a 2019 advertising agreement between Sirius XM subsidiary Pandora and the open audio platform, which created a digital audio advertising marketplace of more than 100 million users.
"We have an exciting roadmap focused on deepening the connections between creators and listeners that fuel creator discovery, career growth and the evolution of music culture on SoundCloud," said company CEO Kerry Trainor. "We've built a great relationship with SiriusXM through our highly successful Pandora ad sales agreement, and their investment gives us added capital flexibility to accelerate our vision and take advantage of strategic opportunities as they arise."
In 2018, Sirius XM purchased streaming service Pandora for $3.5 billion.