Chinese internet giant Tencent Holdings has confirmed that it will spin off its online music business for a planned listing in the United States.
Terms of the proposed spin-off of the unit, including offering size, price range and entitlement of Tencent Music securities for the company’s shareholders, have not yet been finalized, Tencent said in a regulatory filing, Reuters reports.
Tencent Music, China’s biggest music-streaming entity, is seeking an IPO worth up to US$4 billion, valuing it at about US$25 billion, IFR reported earlier in April, citing sources.
The proposed listing is a sign that the once-flagging online music industry is getting back on track as more listeners take to streaming music through smartphone apps, Reuters noted.
Market leader Spotify Technology debuted its own shares in April, structuring its listing to allow existing investors to sell directly to the public.
Spotify owns about 9 percent of Tencent Music, while Tencent owns a 7.5 percent stake in Spotify, according to calculations by IFR, a Thomson Reuters publication, in April.
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