Music streaming service SoundCloud is on the verge of selling chunks of its business to two investors to help keep it afloat, Bloomberg reports.
According to Bloomberg’s sources, the investment is coming from the Raine Group, a boutique bank headquartered in New York, and Singapore’s state investment firm, Temasek Holdings.
The deal could be announced as early as the end of the week, Bloomberg’s sources said.
SoundCloud, headquartered in Berlin, laid off 40% of its staff last month and shut down satellite offices in London and San Francisco in a bid to cut costs and remain independent. The company’s headcount will go from 420 to around 250.
Hailed as one of Europe’s most promising startups, SoundCloud has around 175 million listeners, who tune in to hear up-and-coming artists as well as big names, but the company remains unprofitable.
It’s unclear how much Raine and Temasek are looking to invest but reports have suggested that SoundCloud is trying to secure anywhere between $US100 million (£76 million) and $US250 million (£188 million) from investors.