It’s no secret that SoundCloud has struggled to turn its massively popular music service into an actual business. After launching its long-delayed subscription tier last March, the company has reportedly been in talks with both Spotify and Google about possible acquisition deals. But now we know why it’s so urgent: SoundCloud lost $52 million in 2015, according to a new filing with the U.K. government and the company could run out of funds by the end of this year if it doesn’t raise more money or find a buyer.
The streaming music business remains a tough one in general, with established players like Spotify and Pandora failing to make an enduring profit and tech giants like Google, Apple, and Amazon able to run music services of their own without worrying too much about profitability. With 175 million listeners, SoundCloud is huge. Now it just needs to find some cash.