Tencent Music, the online music streaming business of Chinese internet giant Tencent, is reportedly set to debut with an initial public offering (IPO) in the US as the company aims to better bolster its position and compete within the North American market.
The division has more than 700mn monthly users, with approximately 15mn paying subscribers.
The news has been brought to light by a statement from Tencent on the Hong Kong stock exchange, outlining its intent, where the company revealed that it has received regulatory approval from the Hong Kong authorities for the move.
However, it remains to be seen whether a spin off or US IPO will take place, with Tencent having said that the terms, offering size, price range and securities for shareholders of Tencent Music had not yet been finalized.
According to speculation, an IPO would value Tencent at between $29-31bn, up from the estimated $25bn that was established earlier in the year.
The move would allow Tencent music to more readily compete with US music streaming giant Spotify, a company that owns 9% of Tencent Music following a share swap last year where the Chinese firm acquired a 7.5% stake in Spotify.