Chinese web giant Tencent has confirmed that it will spin off its music division via an Initial Public Offering in the US. The company confirmed its intentions regarding Tencent Music in a statement issued on the Hong Kong stock exchange yesterday.
The main Tencent business is listed in Hong Kong. It’s thought that the web firm had originally considered spinning off its music business via an IPO on the same stock exchange, but by earlier this year had decided to list in the States instead.
That was possibly partly influenced by Spotify’s decision to list on the New York Stock Exchange and partly by recent regulatory changes in Hong Kong. Spotify and Tencent have an alliance, of course, with the two companies each having equity in the other following a share swap deal late last year.
Tencent’s music division operates the market-leading streaming services in China, including QQ Music, as well as owning and distributing music catalogues in the region. Beyond the decision to list in the US, most other information about the Tencent Music IPO is still to be announced. More details will be released “as and when appropriate”, it said yesterday.[from https://ift.tt/2lvivLP]