×
You will be redirected back to your article in seconds

Tencent Music Seeking Spotify-Like $25 Billion Valuation (Report)

Tencent Music, the music distribution arm of China’s social media giant, Tencent, is seeking an IPO by the end of the year, with a valuation of some $25 billion. That is only slightly lower than the $28 billion market capitalization of its frenemy Spotify.

Chinese financial sources reported this week that Tencent has begun a process of auditioning investment banks to handle a share listing that is likely to be on a U.S. stock exchange. The reports say that Tencent Music will aim to raise some $3 billion to $4 billion of fresh capital.

Following a share swap late last year, Spotify owns 9% of Tencent Music, and Tencent owns 7.5% of Spotify. That valuation ascribed a valuation of $13 million to Tencent Music. The Tencent parent company retains a 62% controlling stake in Tencent Music.

The company counts over 700 million monthly users, of which some 15 million may be paying subscribers. It operates a variety of apps allowing users to stream music, watch live performances and play karaoke, as well as a close connection to Tencent’s WeChat messaging platform, which has over 1 billion users.

In its current form, Tencent Music was established in 2016 after a merger with streaming rival China Music. Since then it has cemented its leadership position by adding to and renewing deals with international studio groups Universal Music, Warner Music and Sony Music. It also has deals with China’s Huayi Brothers Music and Korea’s YG Entertainment.

More Music

  • Ludwig Goransson Black Panther Composer

    Complete Guide to This Year's Oscar-Nominated Scores

    Unlike the song category, it’s impossible to predict the winner from this year’s quintet of original-score nominees. It’s almost anyone’s game. Swedish composer Ludwig Göransson spent a month in Africa recording unusual drums, flutes and vocals, then adding them to a massive London orchestra and choir to create a unique soundscape for the fictional land [...]

  • Oscars Best Song Nominees

    Complete Guide to This Year's Oscar-Nominated Songs

    This year’s crop of Oscar-nominated songs may be the most diverse in years: a ballad and a pop-rap from two of the year’s biggest films, plus a delicate lullaby from a Disney musical, a political themed anthem, and a novelty tune for singing cowboys. “Shallow,” the top-10 hit from “A Star Is Born,” is widely [...]

  • Bebe Rexha

    Bebe Rexha Drops New Single, 'Last Hurrah' (Listen)

    Bebe Rexha is back with her first single of 2019 — “Last Hurrah.” The Andrew Wells-produced track is Rexha’s first solo single since 2018’s “I’m a Mess,” which appeared on her debut album “Expectations” alongside the Grammy nominated “Meant to Be.” Inspired by some chocolate cake and a story about her friend, Rexha says the single [...]

  • Jussie SmollettFOX 'Empire' TV show panel,

    Jussie Smollett Case: Chicago Police Arrest Two Suspects

    Chicago police confirmed on Friday that they have arrested two suspects in the case of “Empire” actor Jussie Smollett. The police did not state what charges the men are being held on. Local media have identified the men as two brothers from Nigeria, though law enforcement has not confirmed their identities. Smollett’s representatives have declined [...]

More From Our Brands

Access exclusive content