SiriusXM announced that is has invested $75 million in audio platform SoundCloud, which will use the infusion to enhance its existing services and accelerate product development. SiriusXM purchased the investment amount in securities and will now have a minority stake in the company along with two seats on SoundCloud’s expanded board of directors.
SoundCloud is already working with SiriusXM subsidiary Pandora, which has been handling U.S. advertising sales for the platform since last year. Their agreement allows SoundCloud to tap into Pandora’s direct sales capabilities, data and audio marketplace to allow brands and advertisers the ability to purchase its U.S. ad inventory directly.
SoundCloud was formerly on the brink of Chapter 11 (bankruptcy) but has since achieved stability. CEO Kerry Trainor cited SoundCloud’s “creator-led growth strategy” for its resurgence. “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,” Trainor said. “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.”