Published on : Dec 14, 2017
One of China’s most sought after early public offerings in the coming year may turn out to be music for the ears of investors of Tencent Holdings Ltd. due to its capacity to clear out any noise that can be made by Apple Music and Spotify in the largest market.
Tencent Music, a downloading and streaming service, is projected to raise minimum US$1 billion and is valued at US$10 billion, according to the sources close the matter. Although, as of now there has been no decision about the exchange on which the share will be listed. Tenecent Music, based on three distinct platforms, already has almost double paying subscribers as Spotify Ltd.
The Asia’s largest internet company want to take full advantage on the sales of digital music in the mainland China that are projected to spike up by almost 88 percent inside four years, as per the predictions by PricewaterhouseCoopers. Apple Music was introduced in the country in 2015, yet majority of sales of smartphones in China run on Android operating system, and there are no announcements from Spotify to expand its services there.
Tencent also the an upper hand in terms of well-set business where the side of music sales and streaming can leverage from other services of the company such as WeChat, video streaming site, content licensing deals with over 200 global and domestic labels, and a karaoke app as well. The company services provide over 17 million songs to over 700 million active users monthly.