Fresh from Spotify’s unique direct listing in the U.S., one other large streaming service is about to comply with go well with and go public in America.
Tencent Music Entertainment (TME) has nothing like the worldwide profile of Spotify, however China’s high streaming service is heading for the U.S. public markets in line with a filing made this weekend by guardian firm Tencent, the $500 billion Chinese web big which plans to spin the music business out.
At this level, particular monetary particulars across the itemizing aren’t being launched, however previous reviews have urged that it could raise as much as $1 billion and give TME a valuation of $30 billion. That can be fairly a bounce from its most recent $12 billion valuation and definitely not assured provided that others from China, including Xiaomi, has fallen in need of formidable IPO valuation targets.
But there’s precedent right here since Tencent made a comparable transfer final 12 months when it broke off China Literature, its digital books business unit, and listed it in Hong Kong with some success. Hong Kong had additionally been mooted as a vacation spot for TME, however the Tencent submitting said the agency’s intention to “spin-off by way of a separate listing… on a recognized stock exchange in the United States.”
While it appears unlikely that Tencent will comply with Spotify and undertake a direct itemizing — which ditches with the standard technique of an IPO worth and fascinating banks — it might nicely name on its rival for pointers since they’re each mutual traders.
The duo announced an equity swap deal in December that would see them workforce up on business sooner or later. At the time it was actually a signal that each side have been stepping into form to go public, and TME’s IPO would wrap that up.