STOCKHOLM, Sweden — The world’s largest music streaming service, Spotify annonced that it has agreed on Friday with China’s Tencent to equity investments, strengthening relationships between the two most popular music streaming platforms in the world.
“We are delighted to facilitate this strategic collaboration between the two largest digital music platforms in the world,” said Martin Lau, President at Tencent. “Both of us share the same commitment to bringing music and superior entertainment experiences to music lovers, and to expanding the global digital music market for artists and content partners.”
TME and Spotify will acquire new shares representing a minority equity stake in each other for cash. In addition, Tencent will invest in Spotify through secondary purchases. Following these transactions, Spotify will hold a minority stake in TME, and both Tencent and TME will hold minority stakes in Spotify.
“We are excited to embark on this partnership with the largest music streaming platform in the world,” said Cussion Pang, CEO of TME, in joint press release. “TME and Spotify will work together to explore collaboration opportunities, with a common objective to foster a vibrant music ecosystem that benefits users, artists and content owners.”
Spotify which operates in 61 markets around the world, has over 60 million paid subscribers and over 140 million active users that have access to over 30 million songs. In April 2017, Spotify signed a global licencing agreement with the Universal Music Group and its most recent acquisition of Soundtrap.
“Spotify and Tencent Music Entertainment see significant opportunities in the global music streaming market for all our users, artists, music and business
partners,” said Daniel Ek, CEO and Founder, Spotify. “This transaction will allow both companies to benefit from the global growth of music streaming.”
The Chinese social media and video game giant Tencent is top five of the world’s biggest firms. Its developement of WeChat has revolutionized China’s tech industry.
Reported and written by Andrew Mitchell for Woodlawn Post