Tencent Music reportedly preparing for IPO this year
Tencent Music Entertainment Group, China’s largest music-streaming company, is preparing for an IPO later this year, according to media reports.
The Wall Street Journal reported the Chinese internet giant’s music subsidiary is preparing for what would be one of the biggest technology IPOs ever, with plans to interview investment banks in the coming weeks.
The share sale would value the business at over $25 billion with expectations the company will list on the US Stock Exchange.
The move would follow a flurry of IPO activity by Chinese companies including iQiyi which recently raised $2.2bn.
Tencent Music was established in 2016 after a merger with China Music Corp (CMC) and has cemented its position as the market leader in music streaming. The company has deals with international studio groups Universal Music, Sony Music and Warner Music.
In December, Tencent and Spotify acquired minority shares in the other’s company in a bid to unite the world’s largest music streaming platforms. Spotify is yet to launch in the China market.