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Tencent’s Music Unit Seeks Bank Pitches for 2018 IPOBy , , and
Spotify-like operator plans to seek at least $1 billion
Tencent Music offering would follow listing of e-book arm
Tencent Music Entertainment Group, the Spotify-like unit controlled by China’s largest social network operator, is seeking bank pitches for an initial public offering that could raise at least $1 billion, people with knowledge of the matter said.
Tencent Music has asked advisers to pitch for a role on a share sale that could take place next year, said the people, who asked not to be identified because the information is private. The company is considering a listing in Hong Kong or New York, the people said.
Tencent Music was spun out from its parent after merging with China Music Corp. It has deals in place to distribute songs from artists including Beyonce and Taylor Swift via licensing rights with some of the world’s largest record labels, including Universal Music Group, Warner Music Group and Sony Music.
A representative at Tencent Music declined to comment.
Tencent, the owner of the WeChat messaging service, held about 62.45 percent of the music group at the end of 2016. Tencent Music makes money via subscription, advertisement, and sub-licensing its content to other companies including Netease.