SoundCloud shareholders have reportedly been asked to accept or reject a reorganisation proposal by the end of today (11 August).
According to a report from Axios business editor Dan Primack, the company is asking its investors for $169.5m (£130.7m) at a pre-money enterprise valuation of just $150m – down from a previous valuation of $700m in March 2017.
If the funding isn’t accepted, founder and chief executive Alexander Ljung has suggested the company would not be able ‘to continue as a going concern.’
Under the deal, the new investors would be Raine Group and Temasek, as well as existing backers Union Square Ventures, Doughty Hanson and Atlantic Technology. They would acquire more than 50 percent of the company, while previous investors may face worsened terms.
If the proposed funding deal is accepted, former Vimeo chief executive Kerry Trainor will reportedly replace Ljung, who will stay on as chair of the company’s board.