Chinese tech giant Tencent plans to list online music arm in the United States
The proposed listing can be read as a sign that the music industry is getting back on track, as more listeners take to streaming music through smartphone apps even as companies battle piracy and try to sign up more paying customers.
Tencent’s major rival in music streaming, Spotify, debuted its own shares in April, structuring its listing to allow existing investors to sell directly to the public.
In a U.S. Securities and Exchange Commission filing last year, Spotify and Tencent announced a share swap in, as both sides took an undisclosed slice of the other for strategic purposes going forward.
According to the calculations by Thomson Reuters publication IFR in April, Spotify owns about 9 percent of Tencent Music, while Tencent owns a 7.5 percent stake in Spotify.
Tencent Music is seeking an initial public offering worth up to $4 billion, valuing it at about $25 billion, IFR reported in April, citing people familiar with the plans.
—CNBC’s Shafi Musaddique and Reuters contributed to this article