Tencent Music to buy Chinese audio platform Ximalaya for $2.4 billion
June 10 (Reuters) - China's Tencent Music Entertainment Group (1698.HK), opens new tab said on Tuesday it would buy domestic long-form audio platform Ximalaya (XIMA.N), opens new tab for about $2.4 billion in cash and stock, expanding its library of content to attract more paying users.
The deal will give Tencent Music access to a diverse creator network that includes professional and user-generated content on topics spanning history, business and entertainment.
It is one of the few sizeable M&A transactions in the technology sector in China in the recent years. An unprecedented regulatory crackdown on private enterprises in the country, starting from late 2021, had cast a chill on dealmaking.
The deal also comes as Beijing has been looking to bolster private-sector sentiment and encourage executives to expand their businesses against the backdrop of a deepening China-U.S. tech war and Chinese economic slowdown.
Tencent has made large investments in long-form content such as podcasts and audiobooks to grow its Super VIP program, which offers a premium experience by bundling high-quality audio, online karaoke and exclusive event access.
Still, 86Research analyst Charlie Chai warned that integration could be a challenge, pointing to Tencent's $417 million deal for Lazy Audio in 2021 that struggled to unleash the gains that were originally expected.
"The TME-Ximalaya deal could be compromised by similar organizational friction, keeping the latter as mostly an independent entity over the near term," Chai said.
The deal follows Tencent's quarterly revenue last month exceeding expectations, driven by subscriber growth in its online music services, particularly in long-form audio.
The company will offer $1.26 billion in cash and Class A shares representing up to 5.20% of its total outstanding stock. It will also issue shares to Ximalaya's founder investors not exceeding 0.37% of its total share count.
The stock component totals about $1.15 billion based on Tencent's last closing price on April 24, a day before Bloomberg News reported about the deal.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
36 minutes ago
- Reuters
Toyota chairman to face scrutiny over $33 billion deal at shareholder meeting
TOYOTA CITY, Japan, June 12 (Reuters) - Toyota Motor (7203.T), opens new tab Chairman Akio Toyoda is likely to face scrutiny over a $33 billion take-private deal of a key supplier when shareholders assemble for the Japanese automaker's annual general meeting on Thursday. This year's gathering, set to kick off at 10:00 a.m. (0100 GMT), marks the first time in three years that Toyoda isn't being opposed by a shareholder proxy adviser. Nevertheless, the grandson of the automaker's founder is likely to face some tough questions about governance - if this week's meeting of supplier Toyota Industries (6201.T), opens new tab is anything to go by. Shareholders of forklift maker Toyota Industries on Tuesday voiced disapproval of the 4.7 trillion yen ($33 billion) take-private bid from its parent that they said was unfair to minority shareholders. The world's top-selling automaker plans to take its supplier private in a complex, multi-part transaction that includes an offer price of 16,300 yen a share. While the price might be a good deal for Toyota Motor shareholders, critics of the bid, including London-based Zennor Asset Management, have raised concern about the transaction, particularly around the treatment of minority shareholders. "This was not a decision that neglected minority shareholders, but rather one that was taken with all the factors in mind," Toyota Industries' President Koichi Ito told shareholders on Tuesday. Under the deal, a new holding company will be set up. Unlisted real estate company Toyota Fudosan will invest 180 billion yen while Toyoda will invest 1 billion yen. Toyota Motor will invest 700 billion yen for non-voting preferred shares. Tuesday's meeting ran for almost two hours, Toyota Industries' longest ever, the company said. Executives also took some two dozen questions from shareholders, the most ever. Hong Kong-based Oasis Management, which has shares in both Toyota Motor and Toyota Industries, has said it would push for a higher price. Toyota has said the acquisition would allow Toyota Industries to deepen collaboration with group companies, without concerns of short-term profit targets, as Toyota itself becomes a broader "mobility company". This year, prominent proxy advisory firms Glass Lewis and Institutional Shareholder Services have both recommended that shareholders re-elect Toyoda. Glass Lewis had recommended voting against him the previous two years and ISS had last year. Toyoda's position at the automaker had come under scrutiny over broader governance concerns. Neither proxy adviser gave specific reasons for the change in their recommendations this year. Toyoda has seen shareholder support slip in recent years. He was re-elected to the board with 72% backing in 2024, in what he later said marked the lowest support rating ever for a Toyota director. That was down from 85% and 96%, respectively, in the prior two years. In a July 2024 interview by Toyota's own news outlet, Toyoda said his seat on the board could be at risk if shareholder support continued to fall. Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor.
BBC News
an hour ago
- BBC News
World Business Report Disney and Universal sue AI company Midjourney
Disney and Universal are suing AI photo generation company Midjourney alleging its popular image generator had become a "bottomless pit of plagiarism". Rahul Tandon finds out how likely the lawsuit is to be successful. Also, can we expect peace between the US and China in their crucial trade war as both sides say they have agreed on a "framework" for a deal? And we hear how tensions between President Donald Trump and Elon Musk might be affecting investors. You can contact us on WhatsApp or send us a voicenote: +44 330 678 3033.
BBC News
2 hours ago
- BBC News
Race Across The World 2025 winners revealed
Spoiler Alert: Race Across The World 2025 winners revealed and final episode spoilers ahead! Race Across the World 2025 reached its thrilling conclusion with mother and son, Caroline and Tom, becoming the first pair to reach the final checkpoint in Kanniyakumari and claim the £20,000 prize. After thousands of kilometres raced across China, Nepal, and India, the final leg was the closest all teams had been in 51 days. In a final dash to the finish, Caroline and Tom, the first ever mother and son pairing to win, were declared winners of the 14,100km race across the world's largest continent, Asia. Watch Race Across the World on BBC iPlayer and add to your Watchlist Watch Celebrity Race Across the World on BBC iPlayer and add to your Watchlist Sprinting to the finish line, sisters Elizabeth and Letitia, who have remained consistent throughout the race, came in second place, with just 19 minutes between them and the race winners. They were followed by teenage couple Fin and Sioned, while brothers Brian and Melvyn, came in fourth. It was a race to find a boat towards the fishing village of Arockiapuram and there, find the Vattakottai Fort where the last and final sign in book was waiting. As Caroline and Tom turned to the page to discover they had reached the final checkpoint in first place, they hugged, overcome with emotion. An emotional Caroline cried: 'We must never doubt ourselves again. Ever, ever, ever.' Writing their names in the book, Tom said: 'That's a really good feeling, I'm lost for words, I can't believe it. 51 days racing through countries I never thought I'd go to, I never thought we'd come this far, I never thought we'd achieve so much and I've never been prouder of my mum – she got me through it.' As sisters Elizabeth and Letitia turned the page to claim second place, Elizabeth said: 'Ah Tom and Caroline, so close, 19 minutes,' with Letitia adding: 'I'm proud of us'. Just 45 minutes behind the winners, Fin and Sioned arrived in third place. Fin said: 'We've done well.' He added: 'it would have been incredible to have come first, but obviously we can't all come first.. we've gone more than 12000km…' Sioned continued: 'it's been more than just the distance, it's been a journey for us.' Brian and Melvyn, who arrived in fourth place, only 3 hours and 5 minutes behind race winners, said: 'We've done very well actually. Really pleased for the guys that have won it. Beer? Desperately, and definitely!' The final episode saw Caroline and Tom begin the last leg in the lead, 6 hours and 54 minutes ahead of Elizabeth and Letitia. They started from the 7th checkpoint, Panaji in Goa with just over 1000km to traverse across the southern Indian states to reach the finish line at the southernmost tip of India in Kanniyakumari. Arriving into Kanniyakumari by taxi, Tom said how nervous he was, and worried more when he exclaimed: 'I've just seen Fin and Sioned, I promise you, I have, oh no'. Getting caught in a traffic jam, Caroline and Tom were visibly despondent. Receiving their first instructions to reach the tip of India, Caroline and Tom raced through huge crowds of people trying to watch the incredible sunrise but with little time to appreciate the stunning views: 'it's a nice sunrise, bit hard to focus on, but it's nice.' Hot on Caroline and Tom's heels, Elizabeth and Letitia received the next instructions to proceed on foot to the front of Our Lady of Ransom Shrine. Not hesitating to ask multiple people for help, the teams made their way and discovered they must then take a boat to Arockiapuram fishing village. Caroline and Tom secured a boat for 1000 rupees, stressing that they were in a race and the need for speed to their driver. Still worried about having seen Fin and Sioned, Tom said; 'I still can't see Fin and Sioned, I don't know if they can see us.' The teams received a message instructing them to head on foot to the Vattakottai Fort. Running through the winding streets, trying to find the beach, Tom said: 'it's so far out of the way'. On reaching the entrance to the Fort, Caroline and Tom ran in with Caroline asking 'Can you see anyone else, Thomas?' and Tom replying; 'I don't see anyone.' The pair reached the book and discovered they had won the race of a lifetime and a prize of £20,000. Over the eight-part series, the four pairs have raced over 14,000km over 51 days. The teams have successfully journeyed across the world's largest continent, Asia, taking in three of its most diverse and fascinating nations – China, Nepal and India. They've had to navigate crowds, congestion and cultural barriers, as well as a multitude of vast ranging landscapes on an epic journey from The Great Wall of China in northeastern China all the way to the southernmost tip of India – Kanniyakumari – all without smartphones, internet access and bank cards, and armed only with the cash equivalent of flying the route. Following the final episode of Race Across the World, the teams will return for a heart-warming reunion celebration on iPlayer and BBC One on Wednesday 18 June from 9pm. The teams will reflect on their race, including behind-the-scenes insights and unseen moments. This one-off special offers an in-depth and intimate look into how the travellers coped with the trials and tribulations of a life-affirming race, and the impact it's had on their lives and relationships. Race Across The World 2025 Winners Q&A How does it feel to have won Race Across the World? Caroline – It feels absolutely amazing, I'm so sad it's come to the end, that is the worst bit about it. We've enjoyed being with everybody but my God this race has meant so much. We've learnt so much we've enjoyed it and to actually win it as well as to have the experience is the best thing that could have happened to us. Tom – Doing the experience in itself is winning but to actually get to that book first and open it and to see that it was empty was something that I'll remember for the rest of my life. Can you sum the experience up in just a few words? Tom – Best experience of my life. Caroline – Incredible, amazing, valuable in so many ways and a lifetime achievement. Who did you tell first? Caroline – My husband. In the car on the way home, we couldn't hide it. Tom – We made a pact on the plane journey home not to tell anybody, but within 5 minutes of seeing him we let that one go! It was so hard to keep it in! What do you plan on doing with the money? Tom – I haven't really thought about what I'm doing with the money yet. I don't want to be stupid and waste it. Mum and I want to go backpacking again so some of it will be used for that. Caroline – Thomas is starting up a business and its been inspired by India and I'd like to help him with that. VHW
