HITS Daily Double

Will nearly $170m in cash and the installation of former Vimeo chief Kerry Trainor as CEO (replacing longtime head Alexander Ljung, who remains Chairman of the Board) truly rescue SoundCloud?

The moneybomb from The Raine Group and other investors announced Friday (8/11) will certainly allow the company to carry on for the foreseeable future; the question remains, however, what path the DMP will follow and whether that path will prove profitable and/or sustainable.

The not-so-secret weapon in SoundCloud’s new arsenal is Raine partner and industry veteran Fred Davis. If anyone can figure out how to make it work, many insiders say, it’s Davis, who was the earliest American player to support Spotify and who introduced Daniel Ek to everyone in the biz. He’s got game.

Certainly SoundCloud has been a goldmine of music discovery in the last several years. (As we noted previously, the thought of its demise was alarming to many gatekeepers.) But getting the gold out of the mine is no easy feat. With $170m lifeline, Trainor, Davis, Ljung and team now have the opportunity to forge a new path. The biz is waiting to see if the platform’s strengths can be transformed into marketshare might.