Tencent Music Getting Ready For An IPO?
In the latest sign that they may be preparing for a US-based IPO, Tencent Holdings has made arrangements to formally spin off Tencent Music into a separate entity. (If you’re not familiar with Tencent, think of them as the Pandora of streaming in China.) This move will allow Tencent to sell shares of its standalone music streaming service the same way Spotify did in April. There’s no indication whether Tencent will do a direct list IPO (with no sponsoring investment bank) the way Spotify did, or if they’ll do a more traditional IPO.
Tencent’s plan to go public is the latest example of the surge in audio streaming creating new investment opportunities within the once-beleaguered music space. In addition to a Tencent Music IPO get ready for Sonos to go public too. I wouldn’t be surprised to see a few more music-related ticker tape symbols over the next year or two.