SiriusXM announced Tuesday that it has invested $75 million in audio platform SoundCloud, which will use the infusion to enhance its existing services and accelerate product development. According to the terms of the agreement, SiriusXM purchased the investment amount in securities and will now have a minority stake in the Berlin-based company along with two seats on SoundCloud’s expanded board of directors.
SoundCloud already has a working relationship with SiriusXM subsidiary Pandora, which has been handling U.S. advertising sales for the buzz-creating platform since last year. That pact allows SoundCloud to tap into Pandora's direct sales capabilities, sea of data and audio marketplace to allow brands and advertisers the ability to purchase its U.S. ad inventory directly.
Formerly on the brink of Chapter 11, SoundCloud has achieved stability in recent years thanks to three main sources of revenue: creator products/services, consumer subscriptions and advertising. It also benefitted from a $169.5 million round of funding in 2017 from Raine Group and Singapore-based investment company Temasek.