Soundcloud reported to be 'dangerously' low on cash

Music insiders reveal cash-strapped status of online streaming giant.

Flanked by a hellish image of a man parading around a bonfire, Digital Music News have reported today that streaming giant Soundcloud are 'dangerously low on cash'.

Amidst flurries of takedown notices and legal action, Soundcloud recently announced a potential subscription service for the platform.

Warner Music Group landed a five per cent stake in Soundcloud last year, but Sony and Universal Music Group deals have let to be set in stone which may be a bug bear for potential new investors.

With no concrete progression on either cashflow situation, Soundcloud's readily available funds are reportedly diminishing. Sources suggest to Digital Music News that the well of cash may run dry within the next four to five months if existing investors don't provide an 'emergency bridge'.

Questions around the viability of the recently occupied lavish 40,000 square foot office space in Manhattan and exposed brickwork-clad, sleep station-equipped Berlin HQ may soon arise.

[via Digital Music News]

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