Tencent Music Entertainment is going public

Tencent Music Entertainment yesterday lifted the curtain on its plan to go public, filing paperwork for a large and widely anticipated US stock market listing. The music streaming company is being spun out of Tencent Holdings, an internet gaming, social media and payments group that operates China’s largest mobile chatting application, WeChat. With more than 800 million unique users across several different platforms, TME is not just China’s largest music streaming service but one of the world’s largest in terms of users. Unlike many other Chinese groups that have listed publicly this year, TME is profitable, taking in about $263 million in the first half of the year… The group… would seek to raise at least $2 billion at a valuation of about $30 billion, which would make it one of the largest tech listings… TME’s valuation has climbed rapidly over the past year. In 2017 the company arranged a stake swap with Spotify, giving Tencent and TME a 7.5 per cent holding in its New York-listed peer. That deal gave the group an implied valuation of $12.3 billion at the time. Proceeds are earmarked for additional music content, product expansion and marketing as well as potential strategic investments and acquisitions…

Don Weinland and Nicole Bullock

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