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The Chinese Internet giant Tencent Holdings Ltd. plans to pull out its online music entertainment business and list its shares in the US through a public offering, the company said in a statement on the Hong Kong Stock Exchange on Sunday. , The largest social media and gaming company in China, said that the terms of the proposal, including size, price and range, have not yet been finalized. Tencent Music Entertainment Group has chosen banks to advise on a planned US initial public offering that could raise at least $ 1 billion, as people with knowledge on the subject told Bloomberg in May.
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The ad follows a similar move by Tencent last year in Hong Kong with its reading business in line, China Literature Ltd. Its music platforms – QQ Music, KuGou and Kuwo – are becoming important vehicles for pop stars like Katy Perry and Rihanna to reach a Chinese audience, alongside local artists like Jason Zhang and Joker Xue.
Tencent has the advantage of an entertainment empire and comprehensive content that encompasses the ubiquitous WeChat messaging application, games, video streaming, a karaoke application and content license deals with more than 200 international and national record companies. But, like Alibaba Holding Group Ltd, Baidu Inc. and Netease Inc., perennial rivals, Tencent faces rampant hacking that is eroding the profits of the industry.
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He also counts Spotify as an investor and partner. While companies are not competing with China, they are clashing in regions such as Southeast Asia, where both are seeking growth.
Spotify Technology SA, based in Stockholm, was made public earlier this year. billion. In May, the Financial Times said that Tencent Music Entertainment's listing could value the company at over $ 30 billion. The assessment may in part depend on where Spotify was trading at the time,
Updates with Spotify evaluation in the last paragraph.
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Read Tencent Spinoff Plans, US Listing of Online Music Business at bloomberg.com
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