The site is reportedly closer to running out of funds than many expected.

It’s one thing if the end of SoundCloud simply meant the discontinuation of one way to listen to music — there are plenty of other ways to stream audio online, including YouTube itself. But SoundCloud hosts music, and its disappearance would mean the simultaneous disappearance of hundreds of thousands of hours of audio — music, podcasts, radio shows, random gobbledygook, all stored on SoundCloud’s no-doubt expensive servers.

Source: If SoundCloud Shuts Down, What Happens to the Music?