Tencent Music Entertainment Group (TME), the music arm of Tencent, announced a swap of minority shares with Spotify, the largest music streaming platform in the world, Caixin reported.
TME, which owns three domestic music platforms, including QQ Music, KuGou Music and KuWo Music, is the number one digital music group in China.
The company will buy shares from Spotify’s existing shareholders in cash, although the size of the stake and value of the investment were not disclosed.
Spotify’s value could reach US$20 billion by the time of its expected IPO next year.
The platform has around 70 million subscribers and 100 million non-pay users, according to Technology Predictions published by GP Bullhound.
Meanwhile, TME said it is planning an IPO next year with a value of around US$10 billion. It has 600 million active monthly users, including more than 15 million subscribers.