NEW YORK (CelebrityAccess) — On Tuesday, Satellite broadcaster SiriusXM announced it has made a $75 million investment into the music streaming discovery platform SoundCloud.
According to the companies, SoundCloud will use the infusion of cash to accelerate its product development, including the deployment of new features for both content creators and listeners.
“SoundCloud’s three consecutive years of strong financial performance directly reflect the success of our creator-led growth strategy,” said Kerry Trainor, Chief Executive Officer, SoundCloud. “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. 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.”
Under the terms of the agreement, SiriusXM’s investment will amount to a minority stake in SoundCloud. The deal will also see SoundCloud expand its Board of Directors with two additional seats that will be designated by SiriusXM.
The minority investment expands on an ad sales relationship between SoundCloud and SiriusXM’s streaming platform Pandora, which started in 2019. The deal allowed advertisers and brands to purchase SoundCloud’s U.S. ad inventory directly through Pandora, bringing the ads to a market of more than 100 million unique listeners.
The Raine Group served as financial advisor to SoundCloud, and Morrison & Foerster as its legal counsel. Allen & Company LLC served as financial advisor to SiriusXM, and Weil, Gotshal & Manges LLP as its legal counsel.