December 23, 2024

Episode

What Superfans Really Want with SoundCloud CEO Eliah Seton

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Sean T. Smith

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SoundCloud has had quite a journey over the years. For two snapshots in time, listen to my November 2019 podcast with then-President Mike Weissman, then listen to my talk in October 2024 with CEO Eliah Seton. Music streaming is in a much stronger place than it was five years ago.

The company is now profitable and is in search of the right buyer. According to Music Business Worldwide, its 2023 revenues were estimated to be €288 million and its consolidated EBITDA was €2 million.

A sale for SoundCloud would also be a payday for its principal shareholders, including The Raine Group, Temasek Holdings, Union Square Ventures, and SiriusXM.

At the Trapital Summit, Eliah talked about how the process is going:

“When I became CEO a little over a year and a half ago, that was the first thing we had to do because we knew eventually we were going to go to market eventually… We needed to get profitable first. So when we have finally come to market to start to talk to potential financial sponsors, potential strategic partners, combinations of the two, it's been from a position of leverage…

We want to be more transparent than one would typically be because I think we've earned that right. We're on the hunt. We want to go find that right partner who shares our vision for where the future of music is going.”

If SoundCloud gets acquired, which type of partner would be the likely buyer? One route is more of a financial partner, like an investment bank or a private equity firm. Another option is a major or independent record label that wants more control over the independent music ecosystem. It could also be a bigger tech company or streaming platform that wants to increase its position. It could also be a combination that fits several options above.

If you have a take on how the process may play out, reply to this email and share your thoughts. Would love to hear your perspective.

In the meantime, you can listen to our conversation here or watch the video on YouTube here.

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