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Another week and another story about Souldcloud’s woes, last week the streaming service announced that it was launching a subscription service for users, and this week it has been revealed that the service is “running dangerously low” on funds, according to Digital Music News.

DMN are quoting three individual sources close to the company who reckon Soundcloud will need an “emergency bridge loan” by the end of year to keep on trading.

Currently the streaming service is valued at $700 million but crucially has yet to turn a profit, the company recently signed a agreement with WMG which saw the label take a 5% stake in the service, but Universal and Sony haven’t signed the same deal – leaving investors worried that Soundcloud could face legal proceedings if an agreement can’t be made.

Apparently, investors are reluctant to invest more money into Soundcloud until they come to terms with Sony and Universal, who are holding out for a larger cash lump sum.

Andrew Rafter

Andrew Rafter is the editor and founder of Harder Blogger Faster.