Spotify music and China’s Tencent Music Entertainment (TME) is the biggest music streaming Company. Music Company said on Friday, “The supporters of China’s Tencent Holdings Limited will buy lesser risk factor for both ahead of the Swedish firm’s predictable stock market listing upcoming year”.
This deal will help Spotify Music Company, a music streaming leader in North America and Europe, and China absorbed Tencent Music, to raise exposure to both core marketplaces. Last week the Wall Street report said, mentioning a familiar person with the matter, which the firms were in talks to switch stakes of up to 10% in each other.
The Tencent Music Entertainment Group said in a statement, “TME, a subordinate of Tencent Holdings Limited, and Specify music will buy new stock shares on behalf of smaller equity risks in each other for cash”.
The founder and CEO of Spotify Music Company CEO, Daniel Ek, said, “This business will allow both businesses to profit from the worldwide development of music streaming”.
The companies said without giving any details, “Tencent Holdings Limited, they will also buy smaller risks in Specify music”. The size of the risks was not mentioned in the given details by the company and a Specify music spokesperson declined to provide another statement about the agreement.
Tencent owns a mainstream stake in Tencent Music Entertainment, which is the main player in the Chinese marketplace with extraordinary music streaming service providers Kuwo, KuGou and QQ Music. They rule the whole Chinese market with a collective of above 500 million monthly active users, although only about 15 million of them are subscribed music their channel.
Its parent company is one of China’s internet giants, known for the WeChat Android application and funds that contain online gaming.
Tencent Music Entertainment Chief Executive Cussion Pang said, “Tencent Music Entertainment and Specify music both of them will work together to search partnership chances”.
In some report, in September that Spotify music was planning to file its aim to lift with the United States managers in order to list in the first half of 2018.