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motiveunknown : tencent   38

Tencent Music generated over $1bn from online music last year, ending 2019 with 39.9m paying users
Tencent Music Entertainment, parent of China’s biggest streaming music platforms, ended 2019 with 39.9m paying music users worldwide. TME, which runs QQ Music, Kugou and Kuwo in China (but is not actually a Chinese company) told investors in a full-year update today (March 16) that its online music subscribers paid $160m to the firm during the course of Q4 2019.
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10 days ago by motiveunknown
Tencent Music isn’t actually a Chinese company. Why should the global music business care?
Moreover, because of its offshore incorporation, Tencent Music doesn’t actually own any of the music services it operates — namely QQ Music, Kugou, Kuwo and WeSing — and, crucially, neither do its shareholders. Instead, Tencent Music merely maintains a series of “contractual arrangements” with said music services through a legal structure known as a variable interest entity (VIE) — which gives the parent company effective operational control over the services and the ability to consolidate their financial and operational results in quarterly financial statements, but does not give Tencent Music’s shareholders any voting rights.
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15 days ago by motiveunknown
Official: Universal Music Group to sell 10% stake, worth over $3bn, to Tencent-led Consortium
Tencent Holdings Ltd has today (December 31) informed its shareholders that a Tencent-led Consortium has signed a share purchase agreement with Vivendi to acquire 10% of Universal Music Group. The deal has been struck with UMG holding an enterprise value of €30bn ($33.6bn), meaning that over $3bn will land in Vivendi’s coffers as a result of the acquisition. The Tencent-led Consortium is joined by Tencent Music Entertainment Group and undisclosed ‘global financial investors’.
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11 weeks ago by motiveunknown
Impala to oppose Tencent investment in Universal Music Group
Independent-music body Impala has come out against plans for Chinese technology company Tencent to buy a 10% stake in Universal Music Group, with an option to buy a further 10%. “Even at a low level of shareholding, we believe the risk of harm for consumers and competitors from such a transaction would be a concern because of the impact in both the digital market and the music sector, with independents being squeezed further and artists also losing out,” said Impala’s executive chair Helen Smith, in a statement this morning.
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november 2019 by motiveunknown
Tencent isn't planning on making $3bn investment in Universal by itself
According to sources, Tencent intends to raise €1bn ($1.1bn) in debt to help fund the €3bn ($3.3bn) UMG deal, with the remaining circa-$2bn likely being funded in equity. Bloomberg reports that Tencent has “a goal to carry out the purchase within the next few months”, and that it may enlist further minority investors to help buy up to 20% of UMG. Vivendi announced in August that it was in talks with Tencent, with the latter set to acquire 10% of UMG. Vivendi also confirmed that Tencent  had a one-year call option to acquire an additional 10% of the music company at the same price and terms.
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november 2019 by motiveunknown
Tencent Music’s Andy Ng talks AI recommendations and karaoke expansion
“For the first two years basically what happened was that Tencent was helping all these music labels who agreed to give us this sole distribution rights and we just hit really hard on the piracy issue,” he says. “We sued almost every single music portal that was infringing content.” In its push to establish a paid model in China, lobbying at a governmental level also started to bear fruit in 2015. “One of the very big pirate sites at that time overnight had to take down 250m tracks,” he says. “That’s how the revolution began in China.”
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october 2019 by motiveunknown
Why Tencent’s Embrace of the Paywall Could Mean for Spotify
Over a recent dinner, one very senior U.S.-based major record company executive told me of their admiration for TME’s strategy of “attaining growth by [inventing] new revenue streams,” both across its digital music service and its Social Entertainment Services division. (For example, within the company’s social karaoke app WeSing, fans have gone wild for a new feature, “Grab the Mic,” which gives “winning” participants the chance to sing alongside local celebrities.) This was in stark contrast, he noted, to Spotify, whose profitability strategy, he said, was “centered on inventing ways to grab margin from its biggest customers.”
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october 2019 by motiveunknown
Tencent hints at plans for AI-generated music and virtual idols
Billboard reports on comments made by CEO Cussion Pang about how Tencent Music has staff that are “thinking of using AI to create the music… this is really a sensitive topic, whether AI or robot or machine learning is going to replace humans in the future… It will improve the efficiencies. We are pouring in a lot of resources to make sure we are in the front end of using technology to improve the music industry.”
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september 2019 by motiveunknown
Tencent Music Entertainment: Will They Stop at Universal and Spotify?
My money says Tencent’s long-term strategy is, essentially, to own the international music business in China. And that it will try to do so by accumulating minority stakes in the most powerful music-related companies in the U.S. and Europe. Why minority stakes? Because, handily, they’re far less likely to trigger any anti-competitive watchdogs to swoop. For one thing, Tencent already owns nine percent of Spotify (while Spotify owns nine percent of Tencent Music Entertainment), thanks to a “stock swap”, scored in 2017. This looks a little like something of a “gentlemen’s agreement,” in which Spotify relinquishes any prior plans to annoy TME by attempting to launch in China.
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september 2019 by motiveunknown
The US must decide if China owning part of Taylor Swift and Rihanna's record label is a national-security risk
The interagency committee reviews acquisitions of US companies by foreign firms for possible national-security risks. In order to block Universal's partial sale, the committee would have to argue that Tencent's investment in Universal is a risk to national security. Since labels collect data on peoples' listening habits — a practice further enabled by the rise of online streaming — such an argument is a legitimate possibility. This is true even though Vivendi is a French company and despite the fact that it's looking to divest less than half of Universal. Ultimately, the CFIUS's scope covers any company with substantial US operations.
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june 2019 by motiveunknown
Why Tencent Music Entertainment's Stock Fell 23% In May
Tencent Music is still a relatively small but rapidly growing company with plenty of runway ahead of it. That being said, the stock is behaving like a classic hypergrowth ticker -- it's priced at a nosebleed-inducing 76 times earnings, even after May's big drop, and it's prone to wild swings on the slightest of disappointments. Co-President Guomin Xie left the company for "personal reasons," and that type of language around a departure can make investors nervous.
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june 2019 by motiveunknown
Universal holds preliminary sale talks with Tencent – but is slow deal progress a danger sign?
Today, two important bits of news. The first, headline-grabbing suggestion, from a Bloomberg report, is that Vivendi is facing difficulties in the sale process of UMG. The publication cites sources who say “some private equity investors balk at the high price and slow pace of the deal”. Vivendi is still yet to formally hire advisers, says Bloomberg, more than five weeks after the company announced its (and UMG’s) Q1 results. Reportedly, “several financial investors” have already lost interest in a UMG deal. However, the second part of Bloomberg’s story may prove even more important: it reveals that Vivendi has already held talks with Tencent Holdings Ltd about a minority investment in Universal Music Group.
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may 2019 by motiveunknown
Tencent Music is 'windowing' premium music behind a streaming paywall – with 'encouraging results'
Perhaps the most interesting stat from TME – which owns QQ Music, Kugou Music, and Kuwo Music – was that its paying online music subscriber base in Q1 grew to 28.4m, up 27.4% YoY. (To remind you – that’s about 12.4m more subscribers than Google and YouTube’s music streaming services jointly counted at the same juncture.) These paying music users generated RMB 710m ($106m) in Q1, up 25.7% on the same period of 2018. Slightly less exciting news about those 28.4m music subscribers: TME’s monthly online music ARPPU (Average Revenue Per Paying User) in Q1 was RMB 8.3 – the equivalent of approximately $1.21.
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may 2019 by motiveunknown
Exclusive: Tencent is launching UPI-powered payments app WeChat Pay in India
Tencent’s plan to launch an UPI-powered payments app in India has come at a time when its game PUBG has been gaining quick popularity in the country. Since PUBG offers several in-app items for purchases, it could use WeChat Pay as by default payments option locally. With the entry of Amazon and Xiaomi, the UPI ecosystem has become overcrowded and also turned hyper-competitive for incumbents like Paytm, PhonePe and Google Pay. Given that RIL-owned Jio and WeChat are also joining the UPI ecosystem, the battle for digital payments would be more fierce as well as expensive.
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march 2019 by motiveunknown
Tencent Music Stock Drops 10% Following Earnings Report
Tencent Music (TME) stock dropped 10.29 percent on Wednesday (March 20), following the Chinese tech giant's first quarterly earnings report since going public in the U.S. The report was a mixed bag, noting revenue for the fourth quarter ended Dec. 31 was up 50 percent year-over-year to RMB 5.40 billion ($785 million).
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march 2019 by motiveunknown
Tencent Music financials reveal revenues grew by 72.9% in 2018
What are the figures? They’re good, at first glance. In the final quarter of 2018, Tencent Music’s revenues were up 50.5% year-on-year to RMB 5.4bn ($785m), and while the company did report a net loss of $127m, it pointed to a one-off $221m charge relating to equity issued to Warner Music and Sony Music in the run-up to the company’s IPO. For the full-year 2018, Tencent Music’s revenues were up 72.9% to $2.76bn, and it posted a net profit of $267m even with the equity charge.
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march 2019 by motiveunknown
Tencent and KKR are mulling $22.7bn Universal Music Group bids
According to Reuters sources, Chinese media giant Tencent and global investments group KKR are both mulling acquisition bids for Universal. Each of these bids are potentially worth up to €20bn ($22.73bn) for up to half of UMG – suggesting that the duo’s interest would value Universal at somewhere around $46bn. Reuters further reports that UMG parent Vivendi is in the process of selecting banks to assist in the partial sale of the music company. These banking partners are expected to be appointed in March, with a sale process kicking off in Q2. However, it appears early-stage, informal discussions about a sale are already underway with potentially interested parties.
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february 2019 by motiveunknown
Tencent Music invests in one of China's first streaming services, Douban FM
Tencent Music Entertainment (TME) has made a ‘strategic investment’ in streaming service Douban FM. Shenzhen-based Douban announced the news in a statement yesterday (February 20), also naming Yuxin Capital as an investor. The statement says that Douban FM will ‘cooperate with Tencent Music Entertainment Group in copyright and products’ to facilitate an upgrade to its brand and the launch of a new v.6 version of the platform (pictured).
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february 2019 by motiveunknown
Tencent Music Stock Upgraded: What You Need to Know
More than a month after the Tencent Music IPO, last night, analysts at JPMorgan finally pronounced their opinion on the stock they helped to sell to investors last month -- and so now we know: They like it. Tencent Music has a "China-unique revenue model" which will help it to grow in the world's most populous country, argues JPMorgan in a note covered today on TheFly.com. It's also "the largest online music streaming operator globally."
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january 2019 by motiveunknown
What You Really Need to Know About Tencent Music's IPO
Overall, Tencent Music reported post-tax profit of $263 million in the first half of 2018, a 341 percent increase year-over-year. In contrast, with the exception of Napster, no Western music streaming service has turned a profit -- and shareholders seem to be responding accordingly. At market close yesterday, Spotify’s stock price was $128.40 per share -- a 5 percent decrease from its opening price of $132.00 in April, and a 35 percent drop from its peak of $196.28 on July 26.
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december 2018 by motiveunknown
Tencent Music Shares Rise on First Trading Day
Shares in Chinese streaming music giant Tencent Music Entertainment rose nearly 8 percent to $14 on Thursday, their first day of trade. The company’s initial public offering of 82 million shares, which was priced at $13 a share, is expected to raise between $1.07 billion and $1.23 billion. The stock is listed on the New York Stock Exchange under the “TME” symbol.
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december 2018 by motiveunknown
Tencent Music plans to IPO in the US by end of 2018
Tencent Music Entertainment’s (TME) highly anticipated flotation in the US will take place by the end of the year. Despite reports that its New York Stock Exchange IPO would be pushed back into 2019, the company has indicated today (December 3), via a form filed with the Securities and Exchange Commission (SEC), that it’s looking to trade publicly in the US by the end of the year. The form posted today is an amendment (No.1) to the original IPO registration document (Form F-1) filed on October 2, 2018.
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december 2018 by motiveunknown
Tencent Music may start trading publicly on 12 December
Hold that speculation that Tencent Music’s IPO may slip into 2019. Bloomberg is reporting that the Chinese music-streaming giant may begin trading in New York on 12 December, having delayed its IPO from October. Although the story carries a prominent caveat: “Timing of the offering hasn’t been finalised and could change depending on market conditions.” The article comes shortly after speculation that Tencent Music might wait until next year to go public, in an effort to ride out the current bumpy market that’s seen Spotify’s share price fall, but which has also dented wider tech stocks.
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december 2018 by motiveunknown
Tencent Music May Push Its $2 Billion IPO Into 2019: Report
The tech stock slump that has investors shifting money from former sure-things like Apple and Amazon and into assets like power companies and bleach, appears to have spooked one of Wall Street's biggest new entrants. Reuters is reporting that China-based Tencent Music Entertainment and its advisers are in talks to push its $2 billion IPO into 2019, rather than face a tech-weary market.
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november 2018 by motiveunknown
Tencent Music IPO on hold amid market turbulence?
The story appears to be that TMEG met with its underwriters this week and decided to postpone the IPO amid fears that any sell-off could negatively affect its pricing. The immediate result – predictably – was that its stock value tumbled on the Dow Jones. The timeline for the IPO was supposed to involve a roadshow to investors kicking off next week, with trading to begin the following week. There is still no official confirmation from Tencent that this is how it played out or any indication of what will happen now: if the IPO will be quickly rescheduled for a new date (there are suggestions it could now happen in November, assuming spooked potential investors can be placated); or if the whole plan is going to be quietly mothballed.
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october 2018 by motiveunknown
Looking for the Music in Tencent Music
TME reported its combined (net) mobile music MAUs to be 644 million in Q2 2018, though defining its users as unique devices rather than unique users. (Interestingly, it defines its social users on an individual basis.). What is clear is that TME’s music users and social users are mirror opposites in user tally and the revenue they generate; social users are just 26% of users but account for 71% of revenues. Clearly, TME has identified there is a lot more money to be made from social experiences than streaming music. Few western companies saw this opportunity. Musical.ly, founded by Alex Zhu and Luyu Yang, did, and was predictably bought for $1 billion by Chinese company Bytedance, home to Douyin (known as TikTok in the west).
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october 2018 by motiveunknown
Chinese Streaming-Music Giant Files for $1 Billion U.S. IPO
Tencent Music Entertainment Group, the online-music arm of China’s largest social-media company, filed for a initial public offering in a continuing surge of U.S. listings by Chinese companies. The music-streaming site listed its offering size as $1 billion in a filing Tuesday with the U.S. Securities and Exchange Commission. The amount is a placeholder and may change.
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october 2018 by motiveunknown
10 things we learned from Tencent Music’s IPO filing
Warner Music Group (through its Chinese subsidiary) and Sony Music have bought $200m of shares in Tencent Music between them, in a deal that closed on 1 October. While some of Sony’s stock can be sold either six months after the IPO or after 1 April 2019 – whichever is sooner – the rest of the shares will be locked up until three years after the IPO, or 1 October 2021. “We believe that such transactions will help deepen our strategic cooperation with our major music label partners and better align our interests with theirs to create long-term value for our users and shareholders,” said Tencent.
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october 2018 by motiveunknown
Tencent Music set to IPO in October, with expected $30bn valuation
Music’s next multi-billion-dollar IPO is on track to arrive before the end of October. Numerous credible reports out of China are suggesting that Tencent Music Entertainment (TME) is preparing to go public in the United States on Thursday, October 18. It is also expected that TME’s intention to float will be publicly declared in a filing with the US Securities and Exchange Commission (SEC) next Friday, September 7. Tencent Music Entertainment, which is majority-owned by Chinese media giant Tencent, quietly began proceedings for a listing in the States in July.
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september 2018 by motiveunknown
Dear Spotify, Tencent's Struggles Offer Cautionary Tale
Tencent is down 17% on the year and dropped a bunch yesterday from its first profit cut in 13 years because “it did not know when it would get Chinese approval to make money from its most popular game” according to Reuters. That’s a good reminder of the facts on the ground for Chinese companies–if President for Life Xi Xinping doesn’t want you to make money, it can ruin your whole day.  Read the Tencent earnings call transcript.  And a squeeze on Tencent can also create some international or regional index fund torque that affects other big Chinese companies.
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august 2018 by motiveunknown
Tencent kills Shazam
Our friend, visibly unfazed, opened QQ Music – Tencent’s own premium music streaming service. Clicking just one of its side icons, the mini-app opened up its own song-recognition feature. A (much too familiar) little penguin emerged to identify the music playing, all within a matter of seconds. In fact, as our friend added, we do not even need to open QQ Music to identify songs. Instead, we could simply do it on WeChat, Tencent’s popular social media and chat app with almost 900 million active users, most of whom in China.
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july 2018 by motiveunknown
It's official: Tencent Music Entertainment is about to float on the stock exchange in the US
Chinese media giant Tencent has confirmed that Tencent Music Entertainment (TME) is set to be spun-off via a public listing in the United States. Tencent is the current majority shareholder in TME, and today (July 8) told its shareholders that the music company would now float on a “a recognized stock exchange in the United States through a registered public offering”. In preparation for this float, Tencent has submitted a proposal to the Stock Exchange of Hong Kong, which has since confirmed that Tencent can proceed with the proposed spin-off.
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july 2018 by motiveunknown
Tencent Music Entertainment to file for $30bn US IPO this week
Another giant of digital music is about to float on the stock exchange in the United States. Tencent Music Entertainment (TME), which is majority-owned by massive Chinese corporation Tencent, is reportedly readying an application for an IPO in the US this week. That’s according to an unverified (but seemingly well-informed) scoop from China-based news group Sina. Sources suggest that TME will file an IPO application with the US Securities and Exchange Commission on Friday (July 6) – officially beginning the firm’s listing process.
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july 2018 by motiveunknown
Tencent Music Seeking Spotify-Like $25 Billion Valuation (Report)
Tencent Music, the music distribution arm of China’s social media giant, Tencent, is seeking an IPO by the end of the year, with a valuation of some $25 billion. That is only slightly lower than the $28 billion market capitalization of its frenemy Spotify. Chinese financial sources reported this week that Tencent has begun a process of auditioning investment banks to handle a share listing that is likely to be on a U.S. stock exchange. The reports say that Tencent Music will aim to raise some $3 billion to $4 billion of fresh capital.
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may 2018 by motiveunknown
Tencent Music invites banks to pitch for role in up to $4 billion U.S. IPO: IFR
Tencent Music Entertainment Group, China’s largest music-streaming company, has invited investment banks to pitch next week for a role in a U.S. IPO worth up to $4 billion, IFR reported on Monday, citing people familiar with the plans. The music arm of Chinese tech giant Tencent Holdings (0700.HK) plans to go public by the end of the year, in a deal which it could raise between $3 billion and $4 billion, IFR, a Thomson Reuters publication, reported.
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april 2018 by motiveunknown
Tencent Music's $25B IPO Could Be One of Tech's Largest-Ever
Now Tencent Music is itself heading for a likely IPO. And although it had a $10 billion valuation just several months ago, and a $12.5 billion valuation at the time of the December stake-swap with Spotify, the Wall Street Journal now reports that the flotation may value Tencent Music at more than $25 billion. That means its IPO could be one of the biggest ever in the tech world. According to the Journal‘s sources, it will be several months before Tencent Music explains where it will hold its IPO—if indeed it chooses to take that path. But it will probably be in the U.S., sometime in the second half of this year.
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april 2018 by motiveunknown
Just What Is Tencent Up To With Streaming?
What Tencent is doing is building a global network of strategic positions in the streaming market that individually might not have global influence, but, collectively could be brought to bear to in an impactful way. Much like John Malone’s Liberty Media, Tencent is taking minority stakes in a strategically selected portfolio of companies. This provides it with the ability to exert some degree of influence and extract some benefit without the risk and resource required for a majority ownership. Minority stakes can also be used as beachheads for majority ownership further down the line.
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february 2018 by motiveunknown
Tencent buys into Indian streaming service Gaana with $115m investment
Tencent has acquired yet another stake in a music streaming platform, two months after its subsidiary took control of a 10% equity holding in Spotify. The Chinese media giant has led a US $115m investment round in India-based Gaana, which was founded in 2010 by Times Media / Times Internet and surpassed 50m monthly users in November last year – a figure which was up by 10m on just two months prior. Gaana says that it plans to use the new capital to develop AI tools which will improve the service’s personalized interface for users, as well as enhancing its subscription tier. Like Spotify, Gaana offers users a paid-for subscription model as well as an ad-supported free service.
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february 2018 by motiveunknown

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