Tencent Music, which holds 42% of music copyright in China, has launched a listing plan with a valuation of 10 billion yuan

according to Hong Kong media reports, Tencent Music has launched plans to list its music business, and the company has begun looking for an investment bank for the listing of Tencent Music, which is valued at US $10 billion.

original title: it is said that Tencent Music's listing plan is valued at US $10 billion

according to Hong Kong media reports, Tencent Music has launched its listing plan, and the company has started looking for an investment bank for the listing of Tencent Music. Tencent Music is valued at US $10 billion.

on April 25, Tencent announced that it would hold an extraordinary general meeting after the annual general meeting on May 17, 2017 to consider, among other things, the ordinary proposal to approve and adopt Tencent Music Entertainment Group Group's share option plan.

as early as 2016, rumors about the listing of Tencent's music business began to appear. On July 15 of the same year, China Music Group and Tencent Group jointly announced that they had reached a consensus to merge the digital music business. In this transaction, Tencent merged its QQ Music business with CMC to become the major shareholder of the new music group through the exchange of assets. CMC co-CEO Xie Zhenyu and Dhanin Chearavanont will be the co-presidents of the new music group, and Peng Jiaxin, vice president of Tencent, will be the CEO of the new music group.

on January 24th, Tencent officially announced the merger of Tencent's QQ Music business and China Music Group (CMC) into a new music group, and officially changed its name to Tencent Music Entertainment Group Group (TME). At present, the platform business integration, structural adjustment and personnel appointment of the new company have been completed.

Tencent Music Entertainment Group Group will set up six business lines: KuGou Music Business Line, QQ Music Music Business Line, Kuwo Music Business Line, Music Finance Department, copyright Management Department and legal Management Department. respectively responsible for the R & D and operation of each music product business and the management of related affairs of the group.

it is reported that Peng Jiaxin, vice president of Tencent, who was in charge of QQ Music's business, took up the post of CEO of TME Group, while CEO Dhanin Chearavanont and Xie Zhenyu, former co-presidents of China Music Group, served as co-presidents, responsible for the business lines of Kuwo and KuGou respectively. In addition, CoolWo President Shi Mian and KuGou COO Chen Linlin have all served as vice presidents of TME, helping to manage Kuwi and KuGou's two major business lines respectively.

according to the data, in the fourth quarter of 2015, QQ Music's market share was about 40%, while KuGou's market share was about 32.4%. This means that after the merger of Tencent and China Music Group, through the combination of KuGou Music and Kuwi Music, Tencent owns more than half of the mainland online music service market.

according to a document circulated in the community, Tencent New Music Group has 789 million monthly active users and 194 million daily active users, and its KuGou Music, QQ Music and Kuwi Music cover 80% of Chinese users. In terms of copyright, Ocean Music and Tencent together control 42% of the copyright of music words and songs in China, and 53.1% of the copyright of music recording, which means that both hold half of the copyright resources in the industry.

in terms of revenue, New Music Group expects its operating revenue to reach $714 million (4.929 billion yuan), $1 billion (6.9 billion yuan) and $1.429 billion (9.865 billion yuan) in 2016, 2017 and 2018. Net profit reached $85 million ($587 million), $227 million ($1,567 million) and $358 million ($2.471 billion). In the first quarter of this year, the combined new company had a total revenue of 1.173 billion yuan (of which QQ Music's income was 417 million yuan, while CMC's revenue was 827 million yuan), an increase of 138.80% year-on-year, with an operating profit of 164 million yuan and a profit margin of 14%.

Edit: nancy