Tencent Music will be listed in the United States on October 18. The company plans to raise US$2 billion. So what are the concept stocks after the listing? This issue is of great concern to investors. Here is a detailed introduction. I hope it will be helpful to you.
Sanqi Interactive Entertainment: invested 120 million yuan to acquire a 20% stake in the music company Shanghai Fenghua Qiushi Culture Media Co., Ltd. Fenghua Qiushi has formed a relatively complete business layout in the music field, and has good cooperation with major music platforms such as Tencent, QQ Music, and Xiami.
Visual China: Strategically cooperates with Tencent to open music resources to Tencent online media and provide users with high-quality genuine content.
Edifier: Founded in 1996, Edifier is currently the largest professional multimedia audio company in China and the second largest in the world. Edifier has focused on the research, development and product application of audio technology for many years. Its product lines cover multimedia computer speakers, home audio, car audio, headphones and other fields.
It is known for its excellent sound quality, excellent workmanship and forward-looking design. It is reported that Edifier is the only partner manufacturer of Tencent Music’s music player “Qingting”. The company also launched QQMusicInside’s WI-FI speakers.
Xinhualian: Xinhualian Group was founded in October 1990. It started from international trade. After 22 years of sustained and rapid development, it has become one of the top 500 Chinese enterprises and the top 50 Chinese private enterprises. Its industry covers the chemical industry. , mining, real estate, ceramics, wine industry, financial investment and other fields.
StarNet Ruijie: Fujian StarNet Ruijie Communications Co., Ltd. is a leading domestic supplier of enterprise-level network, communications, terminal equipment, video application products and system solutions.
For many years, it has always adhered to the business philosophy of "technological innovation, integrated application", adhered to independent innovation and industry application as the basis, and is committed to the development of China's information industry. It is reported that Kmi Network Financing, a subsidiary of StarNet Ruijie Holdings, received the lead investment from Tencent Music.
In addition, some professionals said that Tencent Music’s valuation has been benchmarked against the Swedish music streaming company Spotify. With Spotify’s successful listing in the United States, it will be easier for American investors to recognize Tencent Music’s business model. , and its final valuation is likely to be related to Spotify's stock price at the time of IPO.
On July 15, 2016, Tencent merged its QQ Music business with China Music Group (CMC) to form today's Tencent Music Entertainment Group. "The merged Tencent Music is no longer an online music platform, but has gradually developed into a music empire that controls the upstream and downstream of the music industry chain."
On December 9, 2017, Tencent Music and Spotify reached an in-depth cooperation , Tencent Music Entertainment Group (TME) and Spotify will purchase a small portion of each other's new shares. According to Spotify's prospectus in April this year, Spotify holds approximately 9% of Tencent Music's shares, worth 910 million euros.
Tencent President Liu Chiping said that there are very few companies that have been spun off and listed. Last year, only China Literature was listed. In the foreseeable future, Tencent Music may be a candidate.
Tencent Music has reportedly paid a "huge sum" to control domestic music copyrights. In the long run, as Tencent Music successfully lands on the US stock market, major copyright owners who also hold shares in Spotify will eventually benefit from it.