Latest news with #Ximalaya
Yahoo
2 days ago
- Business
- Yahoo
Tencent Music shares rise after acquiring podcast giant Ximalaya
-- Tencent Music Entertainment Group (NYSE:TME) shares rose 5.4% on Tuesday following news that the company will acquire Chinese podcast platform Ximalaya in a $2.4 billion cash-and-stock transaction. The deal, aimed at positioning Tencent Music as a dominant force in China's online audio sector, mirrors a broader industry shift toward diversified audio services, in line with global peers such as Spotify (NYSE:SPOT). According to a June 10 filing with the Securities and Exchange Commission, Tencent Music signed a definitive Agreement and Plan of Merger to acquire Ximalaya, pending regulatory approvals and customary closing conditions. Upon closing, Ximalaya will become a wholly owned subsidiary of Tencent Music, significantly expanding its footprint in China's rapidly growing podcast market. Ximalaya, one of the country's most popular audio platforms, boasts 303 million monthly users and serves as a major destination for podcasts, audiobooks, and livestream content. The merger, if finalized, would instantly elevate Tencent Music's user base and deepen its content offerings beyond music. The transaction includes $1.26 billion in cash and an equity component comprising Tencent Music Class A ordinary shares, representing up to 5.5686% of the Company's total issued and outstanding shares before closing. A portion of those shares, 0.37% of the total, will be distributed to Ximalaya founder shareholders post-closing, subject to conditions outlined in the agreement. Ximalaya will also undergo a restructuring of certain existing business units before the deal is completed, though full details of that process were not disclosed. Tencent Music emphasized that the restructuring and integration would support long-term synergistic value creation. The acquisition reflects Tencent Music's ongoing effort to evolve from a music-streaming platform to a broader digital audio enterprise. As competition rises and subscription growth slows in traditional streaming, players are increasingly looking to podcasting and user-generated audio to deepen engagement and create new monetization channels. Related articles Tencent Music shares rise after acquiring podcast giant Ximalaya Citi adds Qorvo and Skyworks Solutions to 90-day upside catalyst watch OpenAI to use Google cloud service alongside Microsoft Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Business Standard
2 days ago
- Business
- Business Standard
Tencent Music to buy Chinese audio platform Ximalaya for $2.4 billion
China's Tencent Music Entertainment Group said on Tuesday it would buy domestic long-form audio platform Ximalaya 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.
The Sun
2 days ago
- Business
- The Sun
Tencent Music to buy Chinese audio platform Ximalaya for $2.4b
CHINESE music platform Tencent Music Entertainment Group said on Tuesday it would buy long-form audio platform Ximalaya for about $2.4 billion in cash and stock, expanding its library of content to attract more paying users. U.S.-listed shares of Tencent rose 7% in premarket trading. 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 of the deal totals about $1.15 billion based on Tencent Music's last closing price on April 24, a day before Bloomberg News reported about the deal.
South China Morning Post
2 days ago
- Business
- South China Morning Post
Tencent Music to buy Ximalaya, an audio app used by 300 million users
Tencent Music Entertainment Group , China's largest online music platform by user count, announced on Tuesday its acquisition of audio content platform Ximalaya for about US$2.4 billion in cash and stock. The Tencent Holdings subsidiary will offer US$1.26 billion in cash and up to 5.2 per cent of its total outstanding class A ordinary shares. It will also issue up to 0.37 per cent of its shares to Ximalaya's founding investors. As part of the deal, Ximalaya will restructure certain existing businesses. The transaction is subject to regulatory approvals, including antitrust reviews. Ximalaya confirmed the merger in a notice, pledging to maintain its brand, operational autonomy, core management team and strategic direction. The company also assured business partners that existing contracts would be honoured and user rights would be protected. Tencent Music is listed in New York and Hong Kong. Photo: Shutterstock 'We believe this partnership will unlock new opportunities for Ximalaya's users, creators, employees, partners and shareholders,' the statement read.
Time of India
2 days ago
- Business
- Time of India
Tencent Music to buy Chinese audio platform Ximalaya for $2.4 billion
China's Tencent Music Entertainment Group said on Tuesday it would buy domestic long-form audio platform Ximalaya 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Kulkas yang belum Terjual dengan Harga Termurah (Lihat harga) Cari Sekarang Undo 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. Live Events 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. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories "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.
