Chinese internet giant Tencent Holdings Ltd. has agreed to acquire a majority stake in China’s leading music-streaming company China Music Corp. (CMC), at roughly $2.7 billion.
Tencent’s QQ Music service will merger with CMC to form a new digital music company, aiming to dominate the lucrative online music market in China.
The internet giant will then boost its stake in China Music to about 60% from 16%.
After the merger, CMC’s co-CEO Zhenyu Xie and Guomin Xie will become co-presidents of the new company. Tencent’s vice president Cussion Pang Kar-Shun will become CEO of the new company.
QQ Music, CMC’s KuGou and Kuwo will continue to manage their existing brands and operations independently. Users can enjoy existing streaming services, and have access to a broad range of fun and innovative products provided across these platforms.