SoundCloud asks investors to support rescue deal
Tomorrow is do or die for SoundCloud, the struggling streaming music company that recently laid off 40% of its staff despite having raised over $230 million in venture capital.
Axios has obtained a circular sent to existing shareholders on Tuesday, which requires them to accept or reject a reorganization proposal by the end of Friday. If accepted, then the new investment -- $169.5 million at a $150 million pre-money enterprise valuation -- also closes tomorrow. If rejected, then CEO Alexander Ljung suggests the company would not be able "to continue as a going concern."