×

Tencent Music Files for IPO, Sony and Warner Music Acquire $200 Million in Shares

As expected, Tencent Music Entertainment Group, the largest music-streaming company in China, has officially filed for an initial public offering in the U.S.

In an F-1 filing Tuesday with the Securities and Exchange Commission, the company set a placeholder amount of $1 billion to indicate the size of the IPO and applied to list on the New York Stock Exchange and NASDAQ Global Market under the symbol “TME.” The company recently cut its plan to raise $4 billion in half, and is now seeking $2 billion.

The filing shows that in the first half of 2018, the company’s revenues grew to around $1.3 billion and its gross profit increased from 1.4 billion yuan to 3.48 billion (around $525 million). The company’s profit after tax was around $250 million.

Parent company Tencent owns 58% of its Music Entertainment Group, while Spotify owns 9.1% due to a “stock swap” between the two companies that took place late last year.

According to the prospectus, both Warner Music Group and Sony Music Entertainment have acquired shares in the company for approximately $200 million in cash; Music Business Worldwide first reported that news. The two companies have divided a total of 68,131,015 ordinary shares in TME. Universal is not mentioned as a shareholder.

Both companies saw a mighty profit when selling off Spotify shares in the wake of the streaming giant’s public listing in April. Warner ended up selling 100% of its shares and realizing $504 million, while Sony Music sold approximately 50% of its shares for an estimated $750 million, the company revealed in a public filing in May. Universal Music Group has not sold its Spotify shares, perhaps in anticipation of parent company Vivendi’s plan to sell 50% of that business unit.

Popular on Variety

More Digital

  • Gabrielle Carteris

    SAG-AFTRA Urges Gavin Newsom to Sign Law Punishing 'Deep Fake' Videos

    SAG-AFTRA National Executive Director David White is urging Gov. Gavin Newsom to sign legislation that institutes penalties for nonconsensual digital sexually explicit videos, also known as “deep fakes.” The legislation, Assembly Bill 602, targets companies and individuals who create and distribute the videos in California without the consent of the individual being depicted. “We urge Gov. [...]

  • Facebook Portal logo

    Facebook Is Launching a Portal TV Device: Here’s What We Know

    Facebook is getting ready to launch a TV streaming device in time for the holiday season, Variety has been able to confirm with multiple sources familiar with the company’s plans. The new streaming hardware will be part of the company’s Portal family of devices, featuring a camera, and combining video chatting with TV viewing and [...]

  • MoviePass card

    MoviePass Shuts Down, With Parent Company Citing Failure to Raise Funds

    MoviePass, the long-struggling theater subscription service, finally appears to be down for the count. On Friday, MoviePass notified remaining subscribers that it would be shutting down the service effective Sept. 14, 2019, because “its efforts to recapitalize MoviePass have not been successful to date,” parent company Helios and Matheson Analytics announced. “The company is continuing [...]

  • Disney Plus - Full Lineup

    How to Browse the Disney Plus Catalog the Company Is Testing in the Netherlands

    Disney began testing its Disney Plus streaming service in the Netherlands this week. Consumers in the U.S. will have to wait until November 12 to get access to the service, but European streaming aggregator JustWatch already makes it possible to browse the catalog available during this beta test. JustWatch is one of a number of [...]

  • JoJo Siwa'The Angry Birds Movie 2'

    Nickelodeon Star JoJo Siwa Gets Her Own Dance-Tour Mobile Game (EXCLUSIVE)

    Fans of JoJo Siwa will be able to join the teen influencer’s dance squad on stage — virtually — in a new mobile game. In “JoJo Siwa — Live to Dance,” players will become part of the Nickelodon and YouTube star’s worldwide tour on her professional dance team and experience what it’s like to be [...]

More From Our Brands

Access exclusive content