×
You will be redirected back to your article in seconds

Tencent Music IPO to Be Halved (Report)

Tencent Music, which is being spun off from Chinese e-commerce giant Tencent, may raise less fresh capital than previously expected – possibly only $2 billion instead of an indicated $4 billion, according to a report.

The unit is in advanced preparations for an IPO in the U.S. But according to a report by Reuters and its IFR publication, the company is slicing the amount of new finance being raised.

It is not clear whether that reflects a smaller number of new shares being sold or whether the valuation of the company has been slashed. Tencent has so far not responded to Variety‘s requests for comment.

Over the past months, it had appeared that the company was seeking a valuation of $25 billion. Chinese media have speculated that the valuation could be as high as $30 billion. The new capital component would have exceeded the $2.42 billion raised by Chinese streaming firm iQIYI earlier this year.

Tencent announced the spinoff in early July. According to Reuters, it filed a confidential updated prospectus with the U.S. Securities and Exchange Commission on Sept 7.

Following a share swap late last year, Spotify owns 9% of Tencent Music, and Tencent owns 7.5% of Spotify.

Tencent Music counts over 700 million monthly users, of which about 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 more than 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 Biz

  • IWC Schaffhausen store opening, Rodeo Drive,

    8 Luxury Gifts That Industry Leaders Are Spending Their Paychecks On

    Whether you’re celebrating a new launch, a new business venture, or toasting to the end of another successful year, here are eight gift ideas to reward yourself — and to impress the company you keep. 1. Saint Laurent Perforated Leather Tote Bag If you work in the industry, you need a good bag, and you’ve [...]

  • best airlines ranked inflight entertainment

    Holiday Travel Survey Reveals Airlines With Best In-Flight Entertainment

    There are many ways to pass the time if you’re in the air, but for most people, settling in with a glass of wine and a movie is the preferred way to fly. But not all airlines share the same script when it comes to entertainment offerings. A new survey from the website, CableTV.com, ranked [...]

  • Ventana Sur Rocks with Sales, Mass

    Ventana Sur Rocks with Sales, Mass Attendance, Structural Growth

    BUENOS AIRES — Celebrating its 10th anniversary with a huge hike in attendance to over 4,000 accredited delegates, the 2018 Ventana Sur will go down in history on multiple counts: Sales and pick-ups on movies which combined social comment and entertainment value, increasingly the new foreign-language movie standard; new sections, led by a Proyecta co-production [...]

  • Jennifer Lawrence Harvey Weinstein

    Jennifer Lawrence Denies Harvey Weinstein's Claim in Latest Assault Lawsuit

    Harvey Weinstein was hit with a lawsuit Friday from an actress who claims he forcibly performed oral sex on her, repeatedly masturbated in front of her, and threatened to harm her career if she objected. The suit details that Weinstein claimed he was trying to help her and that he was the gateway to her dreams. [...]

  • Times Up Hollywood

    Time's Up Entertainment Announces New Industry Mentoring Initiative

    Time’s Up Entertainment, an affiliate of the Time’s Up coalition of women across industries working to improve workplace safety, has announced the “Who’s in the Room” industry mentoring initiative. The program’s goal is to increase the presence of people of color from diverse backgrounds in the entertainment industry’s executive ranks. Funded by a $500,000 grant from [...]

  • Tom Cruise as Ethan Hunt in

    Paramount Inks Deal for Theme Park in South Korea

    Paramount Pictures has announced a deal to install a studio-branded theme park in an entertainment resort being developed in South Korea. The agreement was struck between Paramount and Mohegan Gaming & Entertainment, which owns the Inspire Integrated Entertainment Resort in the South Korean city of Incheon. Mohegan has invested KRW 2.8 trillion ($2.4 billion) in [...]

  • Davan Maharaj Mel Gibson

    L.A. Times Publisher's Lawyer Was Accused of Extorting Mel Gibson

    The attorney who negotiated a $2.5 million exit package for L.A. Times publisher Davan Maharaj was previously accused of using secret recordings to extort actor Mel Gibson. Surreptitious recordings also figure in the Maharaj case. NPR reported on Wednesday that Maharaj taped Tronc chairman Michael Ferro. According to the report, Ferro was heard on the [...]

More From Our Brands

Access exclusive content