Industry

Tencent Music Plans to Sell 3% Stock and the valuation is $10 billion now

Sep 04, 2017, 22:55pm2018/05/07 07:22:10 ifeng Tech

Reported by Bloomberg on September 1. According to the informed resource, Tencent Music Entertainment Group<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> plans to finish a new round of financing before its initial public offering (IPO), a valuation of $10 billion. Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Music is held by Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> holding company.

According to insider, Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Music plans sell 3% of its share to strategic partners, including record company. By the end of last year, Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> holds about 62.45% of Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Music.

By establishing relation of stake rights with the record company, Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Music is able to obtain crucial streaming rights in China’s increasingly competitive music market. Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> previously separated its music division and combined it with China Music Group to seek a bigger share in the domestic streaming music market. By 2018, China streaming media’s music subscription revenue is expected to reach 4.37 billion yuan ($664 million).

Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Music competes with music products of Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Group and Netease<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> and is collecting content to cater to users. These users in turn finds online entertainment content and want to get services tailored to their preferences. Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Music has copyright cooperation with the Universal Music Group, Warner Music Group, Sony Music Corporation and other global large record companies to obtain distributorship of Beyonce, Taylor Swift and other artists.

Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Music also has reached copyright distribution agreement with some of the most influential record companies that are critical to the Chinese market, including H.Brothers and South Korea’s YG Entertainment.

Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Music mainly provides music services through QQ music, Kugou music and Kuwo music, with a total of 600 million monthly active users. These music apps offer free services and subscription models. Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Music also runs a live streaming service and a karaoke app.

Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Music generates revenue through subscriptions, advertising and sub-licensing to other companies like Netease<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder />. Hong Kong Mingpao Daily reported in April that Tencent<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Music planned IPO.

This article originally appeared in Phoenix Technology and was translated by Pandaily.

Click here to read the original Chinese article.