Report: Major Labels Getting A Piece Of SoundCloud
July 15, 2014 at 4:32 PM (PT)
Digital-music service SOUNDCLOUD LTD., is close to selling off equity to the three label groups in exchange for an agreement not to sue it for copyright violations, BLOOMBERG reports. The Berlin-based company, boasting a monthly audience of more than 250 million listeners, is reported to be willing to give UMG, Sony Music Entertainment and WMG roughly a 3-5% stake each, along with a percentage of future revenue.
Such an agreement would value SOUNDCLOUD at $500-$600 million. The timing of an official announcement with the labels is in flux because some of the music companies are closer to a deal with the startup than others.