Under the deal, founder Alexander Ljung becomes chairman of the board while veteran digital media operators Kerry Trainor and Michael Weissman join the team as chief executive and chief operating officer respectively.
Despite this downsize, the platform still faced closure before a New York-based merchant bank The Raine Group and a Singapore-based investment company Temasek gave the platform new funding. Ljung is stepping down as CEO, to be replaced by former Vimeo CEO Kerry Trainor.
SoundCloud fans can hopefully rest easy for a while longer.
The platform's co-founder also shared what this investment meant. The statement, which was relatively short, friendly and upbeat, indicates that first that "SoundCloud is here to stay" as well as strong and independent. A spokeswoman for SoundCloud said last month it remained fully funded into the fourth quarter, while declining to comment on what lay beyond.
SoundCloud was thrown a $169.5 million lifeline on Friday, which is a pretty nice lifeline to have, especially when you've been drowning for several months now. But the company has never been able to turn its popularity into a strong business.
Ljung and SoundCloud co-founder Eric Wahlforss will remain with the company they founded a decade ago.
Trainor plans to emphasize developing tools for musicians, DJs and other creators to use on SoundCloud, as he did with video creators on Vimeo by charging subscribers to use the video-sharing, marketing and analytics tools.
In a blog post, Ljung assured concerned users the site wasn't going offline.
"It's crystal clear to us that what SoundCloud has that is truly unique to its service is a unique set of rights and content that are available to listeners", said Davis.
SoundCloud, just like music, will continue to evolve, but importantly, both will always be a key part of life.