Tencent Music To File $30B U.S. IPO Friday [REPORT]
Digital music and streaming conglomerate Tencent Music Entertainment (TME) is set to file an SEC application for a $30 billion IPO in the U.S. this week, according to a report.
TME, which is majority-owned by Chinese corporation Tencent, owns Chinese digital music services QQ Music, Kuwo and KuGou. Sources tell China-based news group Sina that TME will file the application with the Securities and Exchange Commission on Friday.
To put $30 billion into perspective, Spotify currently has a market cap of $29.6 billion.
TME posted revenues of nearly $753 million in 2016 with a net profit of nearly $91 million, according to Sina. In 2017, those numbers jumped to a net profit of $283 million and revenues are expected to exceed $2.6 billion this year, Sina reported.
In December, Tencent took a 9.1%t stake in Spotify with a quarter of that owned directly by TME.
