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Twitter bought 11 percent of Soundcloud at a bargain price

Soundcloud's two founders, Eric Wahlforss (left) and Alexander Ljung at the launch
Soundcloud's two founders, Eric Wahlforss (left) and Alexander Ljung at the launch
Twitter Ventures invested in Soundcloud at a reduced share price and at a lower valuation than has previously been reported, UK filings show.
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(This is a shorter, Enligh version of our original story.)

Soundcloud (NTL), subject to a $70 million investment by Twitter Ventures earlier this year, issued shares that were 17 percent cheaper than those it issued in its series D round of funding in 2013.

According to UK filings, Twitter’s investment was struck at a $629 million post-money valuation, lower than the $700 million that has repeatedly been reported.

Twitter bought an 11-percent stake in Soundcloud in a series E round that totaled $96.3 million and included existing owners such as Index Ventures, Union Square Ventures and Doughty Hanson & Co among the investors.

Soundcloud confirmed the round and its participants but declined to disclose the total amount raised.

According to the Financial Times, Spotify (NTL) are in ”advanced talks” to acquire Soundcloud. That means the market-leader in music streaming is looking at acquiring a service that recently lowered its share price.

Despite the lower price, ordinary shares issued between Souncloud’s latest two rounds of funding mean the company has avoided a down round. Its pre-money valuation increased from $497 million in 2013 to $533 million in the series E round.

However, the post-money valuation increase of $65 million is lower than the $96.4 million series E investment.

 


 

Di Digital is a tech news website for the Nordic region owned by Dagens Industri, the largest business newspaper in the Nordic region.

Nordic Tech List is a database that covers companies, investments and people in the Nordic tech sector.

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