Fresh from Spotify's unique direct listing in the US, another massive streaming service will follow and be publicized in America.

Tencent Music Entertainment (TME) has nothing to do with Spotify's global profile, but China's top streaming service is on its way to becoming public markets in the US, according to a news release from parent company Tencent, the $ 500 billion Chinese Internet giant business out.

At this point, no specific financial details on listing are published, but past reports suggest that they could raise up to $ 1 billion and give TME a $ 30 billion valuation. That would be a sizable leap from the recent $ 12 billion valuation and certainly not guaranteed, as others from China, including Xiaomi, have missed ambitious IPO valuation targets.

But there's been a precedent here since Tencent took a similar step last year when it broke off China Literature, its digital book business, and listed it in Hong Kong with some success. Hong Kong had also been proposed as a destination for TME, but the Tencent application stated the company's intention to "spin-off through a separate listing … on a recognized exchange in the United States."

While it seems unlikely that Tencent will follow Spotify and take a direct listing – which tears apart with the conventional process of an IPO price and engaging banks – it can well call its rivals for clues as they are both mutual investors.

The duo announced an equity swap deal in December that could lead them into the future. At the time, it was certainly a sign that both sides were in shape to go public, and TME's IPO would embrace that.


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