- Chinese music giant said to seek funds from record labels
- Partnering with labels may help secure content deals
Tencent Music Entertainment Group, controlled by China’s biggest social network operator, is seeking new funding at a $10 billion valuation ahead of an initial public offering, people familiar with the matter said.
The operator of karaoke and Spotify-like streaming apps plans to sell about 3 percent of its shares to strategic partners, including record labels, one of the people said, asking not be identified as the details are private. Tencent Holdings Ltd., owner of the WeChat messaging service, held about 62.45 percent of the music group at the end of last year.
By forging an equity link with record labels, Tencent Music would be securing its right to hold on to vital streaming rights in China’s increasingly heated music market. Tencent spun out its music…