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SiriusXM Radio said Tuesday it has invested $75 million in SoundCloud, giving the satellite broadcaster a minority stake in the creator-driven streaming audio service. The investment follows an ad sales relationship between SoundCloud and SiriusXM subsidiary Pandora that began in 2019. SoundCloud says it will use the cash for product development and to enhance services for its global community of musicians and listeners.

In a press release, SiriusXM CEO Jim Meyer said the minority stake in the open audio platform will create value for SiriusXM stockholders by continuing to invest in growing digital audio platforms. “Sound Cloud’s unique platform serves a vital role in today’s music ecosystem where new artists are discovered and build their fan base, and established artists experiment and connect directly with their fans in highly effective ways,” said Meyer. The CEO added that SiriusXM has long admired SoundCloud’s “loyal and growing audience, its offering for creators, and its reputation and popularity in global music communities.”

The move is the latest in a series of investments made to expand the satcaster's presence in the expanding audio universe. In September 207 it made a $480 million investment in Pandora, giving it three seats on Pandora’s board. One year later it bought the streaming audio company outright in an all-stock deal valued at $3.5 billion. In a similar maneuver, SiriusXM's minority investment in SoundCloud will expand its board to accommodate two new members appointed by SiriusXM.

Under the sales agreement struck by the two companies last year, advertisers can purchase SoundCloud ad inventory in the U.S. directly through Pandora, taking advantage of its direct sales force, targeting data, and audio programmatic platform. The companies say their combined U.S. platform reaches more than 100 million unique listeners.

SoundCloud has emerged as an outlet used by unsigned artists to expose their work, helping spawn the careers of Billie Eilish, Post Malone, Bad Bunny, Khalid, Lil Tecca and others. The company says it had a $200 million forward revenue run-rate for the first time in fourth quarter 2019 for its strongest financial performance in its history.

“We have an exciting roadmap focused on deepening the connections between creators and listeners that fuel creator discovery, career growth and the evolution of music culture on SoundCloud,” said SoundCloud CEO Kerry Trainor. “We’ve built a great relationship with SiriusXM through our highly successful Pandora ad sales agreement, and their investment gives us added capital flexibility to accelerate our vision and take advantage of strategic opportunities as they arise.”