Chinese web big Tencent has introduced plans to spin off its on-line music enterprise and float the unit within the U.S.
Tencent, which operates dozens of digital companies, from social networking apps to ecommerce websites, listed its shares on the Stock Exchange of Hong Kong (SEHK) in 2004, but it surely has now sought and gained permission from the SEHK to carve out Tencent Music Entertainment Group and checklist it individually on an as-yet undisclosed U.S. inventory alternate.
Tencent Music is a significant digital music service in China, working QQ Music, along with KuGou and Kuwo, following its merger with China Music Corporation in 2016.
This information comes just some months after Spotify’s successful listing in the U.S., and Tencent’s newest transfer is notable given its present ties with Spotify. Back in December, the 2 corporations invested in each other, with Spotify taking a 9 % stake in its Chinese counterpart and Tencent Music taking a 7.5 % stake in Spotify. This was mutual help was a part of what the duo referred to as a “strategic collaboration,” although little is thought about what precisely it’ll entail in the long term.
What we do know is that music streaming goes from power to power, with revenues from the likes of Spotify and Apple Music recently surpassing CD sales for the primary time. And now Tencent desires to capitalize on its place because the music streaming market chief in China.
The firm mentioned that the precise phrases of its spin-off, together with measurement, worth vary, and meant inventory alternate, have but to be finalized. “Further announcement(s) will be made by the company in relation to the proposed spin-off as and when appropriate,” it mentioned in a filing.