It appears they’ve come to a compromise. The company will raise another pile of money, on the condition that they bring in a new C.E.O. in a move which, I assume, means bringing in an “adult” to grow the business.
It’s not really uncommon among Valley companies, I’d say. Everyone always points to Eric Schmidt or Sheryl Sandberg coming in to help the founders of Google and Facebook, respectively, with building a viable long-term company. And it worked!
I do wonder, though, about SoundCloud’s chances. The music industry is particularly brutal. Go ask Pandora, Rdio and Spotify.
Katie: One big difference for Google and Facebook is that they were on their way to being wildly profitable when the grown-ups came on to guide them. SoundCloud’s management issues have been wildly exacerbated by the fact that streaming music providers can’t make money. How many companies have overcome both problems to become huge success stories?
SoundCloud’s best hope is to stabilize and sell itself to a buyer who can handle…