Tencent Holdings Ltd. publicized a strategic merger with China’s top music-streaming firm China Music Corp. to advance the digital music enterprise in the country.
The merger entails the combination of Tencent’s QQ Music services and China Music Corp. to establish a new digital music company, Tencent said in a statement. The Chinese internet giant is bound to be the majority shareholder of the newly created firm.
Tencent did not release the value of the agreement, but a person privy to the matter stated that the new company will be priced at around $6 billion. Tencent stated it would give its full support to the new firm to further its digital music business that would eventually lead to an IPO.
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