Tencent to IPO online music business in the US

Tencent's music platforms are becoming important networks for international stars
Pop stars such as Rihanna use the service to gain access to Chinese audiences (Source: Getty)

Chinese internet sensation Tencent Holdings has announced plans to create a spin off of its online music entertainment business.

In a company filing to the Hong Kong stock exchange, Tencent revealed that it is set to list its shares in the US through a public offering.

Terms of the proposal including size, price range and assured entitlement of Tencent music securities for shareholders of the company have not yet been confirmed.

Tencent currently has a revenue of around £26.96bn, with the music streaming offering QQ Music, being valued by the company at around £11.29bn.

Read more: Google has signed a partnership with this Chinese tech giant

The filing said that shareholders and potential investors of the company should be aware that there is no assurance the proposed spin off will take place or when it will take place.

"Shareholders and potential investors of the company should therefore exercise caution when dealing in or investing in the securities of the company."

Tencent’s music platforms are becoming important networks for pop stars such as Rihanna, to sell music to a Chinese audience, alongside homegrown artists.

This move could rival streaming services such as Apple Music, however, Tencent already counts Spotify as an investor and partner and the two don’t currently compete in the Chinese market. In the future the two could lock horns in regions such as Southeast Asia as they search for growth opportunities.

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