The companies didn’t specify the size of the stake but it comes with two new seats for Sirius on the SoundCloud board.
SoundCloud said it will use the cash injection to accelerate product development and enhance services for its global community of creators and listeners. The investment, said SoundCloud CEO Kerry Trainor, “gives us added capital flexibility to accelerate our vision and take advantage of strategic opportunities as they arise.”
The two companies currently have a sales agreement through Pandora, a Sirius subsidiary, that lets advertisers and brands purchase SoundCloud’s U.S. ad inventory directly through Pandora – leveraging its significant direct sales capabilities, targeting data, and audio programmatic platform. SoundCloud and Pandora’s combined U.S. audience offering reaches 100 million-plus unique listeners.
SoundCloud “serves a vital role in today’s music ecosystem where new artists are discovered and build their fan base, and established artists experiment and connect directly with their fans in highly effective ways,” said SiriusXM CEO Jim Meyer.
“We admire SoundCloud’s loyal and growing audience, its offering for creators, and its reputation and popularity in global music communities. We believe this is another opportunity to continue creating value for SiriusXM stockholders by investing in expanding digital audio platforms.”
SiriusXM is owned by John Malone’s Liberty Media.
SoundCloud, a creator-driven platform founded in 2007, bills itself as a global accelerator for music culture and has grown its business through products, services and partnerships “that empower audio creators and listener discovery.” It was an original to platform for artists like Billie Eilish, Post Malone, Bad Bunny, Khalid and Lil Tecca.