Rumor: Tencent Buys Controlling Stake in Online Music Firm China Music Corp
Jiemian.com, 7/14/16
Chinese internet and mobile services firm Tencent (0700.HK) has signed an agreement to acquire a controlling stake in online music provider and digital music copyright redistributor China Music Corporation (Haiyang Music Group) in a cash and asset-injection deal, according to a source familiar with the matter.
The amounts have not been disclosed, but it is believed that the asset injection will involve the transfer of Tencent's QQ Music. According to the agreement, China Music Corp will also suspend its plans for an IPO.
Both parties have refused to comment on these rumors.
Editor's Note: China Music Corp. owns online (PC and mobile) music services Kugou and Kuwo. These two services controlled 28% and 13% shares of China's Q1 2016 mobile music app download market, according to data from Chinese third-party statistics firm iiMedia. The Wall Street Journal has reported that Tencent will increase its stake in China Music Corp. from 16% to 60%, citing a source familiar with the matter. For more information on iiMedia's report and The Wall Street Journal's article, please see China's Q1 2016 Mobile Music User Base Reaches 449 Mln MD 5/13/16 issue and Tencent-Backed Music-Streaming Service Plans U.S. IPO. In addition to Kugou and Kuwo, China Music Corporation also owns leading music platform Rainbow Music, as well as music-oriented live broadcast platforms Fanxing, Ocean Music, and R2G. CMC is one of China’s largest and most integrated internet music groups, with more than 12 years of operations and expertise in the field of digital music service and music copyright administration, and with 460 mln monthly active users. The company focuses on providing users with the full spectrum of music services, including streaming, downloading, online live broadcasts, karaoke and other music related services across all screens and terminals, including mobile phones, personal computers, televisions and other multi-media platforms.
Keywords: Internet IPO online music Tencent 0700.HK QQ Music Haiyang M&A China Music Corporation wireless mobile music
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