SoundCloud, a popular music platform based in Berlin, reportedly may go bankrupt if shareholders aren’t convinced to sign a deal during a meeting Friday.
Investors received a flyer from the company notifying them of the restructuring proposal, and asking whether they would accept or reject it, according to Dan Primack of Axios, who referred the meeting as “do or die.”
The reorganization plan would grant SoundCloud with $169.5 million worth of investment “at a $150 million pre-money enterprise valuation.”
The latest cash grab isn’t the first time the company was on the brink of bankruptcy. It reportedly raised $70 million in debt funding earlier in the year from venture capital firms and funds like Ares Capital, Kreos Capital, and Davidson Technology Growth Debt Fund, according to Business Insider. Potentially new investors include Raine Group and Temasek.
SoundCloud was valued at approximately $700 million in 2014. It also reportedly sought $1 billion in an acquisition deal last year, as some companies apparently showed interest.
If the investment money doesn’t come through, it could be hard for SoundCloud to recover.
CEO Alexander Ljung suggests, according to Axios, that the company would not be able “to continue as a going concern.” (RELATED: Employees Did The Unthinkable To Save Ford From Bankruptcy, Chairman Says)
The Daily Caller News Foundation reached out to SoundCloud, but it did not respond to the inquiry by time of publication.
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