Tencent Music Listed on the New York Stock Exchange
Eight months after the IPO of Spotify, streaming music is invited back to Wall Street. Wednesday, December 12, the Chinese platform Tencent Music is to enter the New York Stock Exchange. Little known outside its national borders, it nevertheless shows performances to envy the Swedish service and all of its Western rivals.
The subsidiary of Tencent, the first Chinese Internet group, must fix its introductory price on Tuesday. In its prospectus, it says it wants to raise between 1.07 and 1.23 billion dollars (between 940 million and 1.08 billion euros). And aim for a valuation ranging from 22 to 25 billion dollars, in line with the market capitalization of 23.7 billion of Spotify.
Originally scheduled for mid-October, the transaction was postponed due to the sharp decline in US markets, especially technology stocks. Since then, the downward trend has continued.
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“A community for music fans”
Since the acquisition of China Music in 2016, Tencent Music controls most of the Chinese streaming market. Its four platforms (QQ Music, Kugou, Kuwo and WeSing) are the most popular in the country. In particular, they benefit from their integration with WeChat messaging and the QQ social network, both owned by Tencent, which have nearly 2 billion followers.
Every month, its music applications attract more than 800 million people. This is four times more than the 191 million users of Spotify, and sixteen times more than the 50 million subscribers to Apple Music.