Tencent to Become China’s Top Music Company Following Deal

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Courtesy of Tencent

China’s social media and games giant Tencent is poised to become the country’s top online music player following confirmation of its takeover of China Music Corporation.

China Music operates China’s top- and third-ranking music platforms, Kugou and Kuwu.

Tencent will increase its stake in the firm from 16% to 60% in a deal that values China Music at some $2.7 billion.

The move will allow Tencent to create a combined music unit with its own QQ Music, which is the number two digital music platform in China. The new unit would have a more than 50% user base and control some 60% of available music rights in the country.

That could allow it to increase the pace of transition from a music marketplace dominated by free and piracy to a paid for one