Tencent Music, China’s biggest streaming firm, has raised $1.1 billion at a U.S. IPO after it priced its shares at $13 a bit before a listing on the Nasdaq.
That makes it one of this year’s tech listings, but the pricing is at the end of its $13-$15 range indicating the much-anticipated IPO has felt the effects of an uncertain marketplace. Indeed, the business is thought to have paused the record process, that it began in early October, for some time so choppy are the oceans right now — and that is not even mentioning a shareholder-led suit which was registered last week.
Still, this list gives TME — Tencent Music Entertainment, a spin-out of Tencent — an impressive $21.3 billion evaluation that’s just under the $30 billion which Spotify controlled as it went public earlier this year via an unconventional direct record. TME was valued at $12 billion in the time of Spotify’s listing in Q1 of the year so this is also a large jump. (Meanwhile, Spotify’s current market cap is approximately $24 billion.)
The business operates a constellation of audio streaming services in China which interval live-streaming and karaoke services in addition to orthodox streaming. Altogether, TME asserts 800 million registered users — but there is probably a bit creative accounting or double counting across programs involved since the Chinese government itself says that there are 800 million internet users in the whole country.
Notably TME is rewarding. The exact same can not be said for probably and Spotify Apple Music — although we do not have financials for the latter. That is down to the business model that is exceptional that the company works, with virtual and subscription goods a driver for its own businesses, while the omnipresent messaging program of Tencent helps users are reached by it and earn.
Tidy although the amounts are, its earnings are dwarfed by those of Spotify, which grossed $1.4 billion ($1.59 billion) in sales in its last quarter. For contrast, TME did RMB 8.6 billion ($1.3 billion) in revenue for its first six months of the year.
TME executives are currently taking that as a sign that there scope even though it seems unlikely that will ever be as global as Spotify. Both companies may yet collaborate in the long run however, since they are both mutual shareholders via a share swap deal that reasoned one year past.