Chinese streaming giant Tencent reportedly looks to buy $200 million stake in Warner Music Group

Chinese entertainment giant Tencent is reportedly in discussions to buy a $200 million stake in Warner Music Group ahead of an IPO that is slated for next week according to the Wall Street Journal.

The IPO, which is expected to price between $23 – $26 per share, is predicted to give the company a valuation of as much as $13.3 billion. It could be the largest New York IPO so far in 2020, according to the report. The IPO was initially slated for February of 2020, but ultimately was delayed due to COVID-19. The label is home to artists including Cardi B, Ed Sheeran, and Bruno Mars, among many others.

This news comes on the heels of Tencent purchasing a 10 percent stake of Universal Music this past March. Tencent’s music service Tencent Music Entertainment reported a total of $891 million in revenue for the first quarter of this year, up 10 percent year over year. Tencent Music Entertainment officially went public in October of 2018. The unit, which has long been hailed as “China’s Spotify,” currently has 657 million mobile monthly active users, with six percent paying for its services.

H/T: Techinasia