China’s social media and games giant Tencent is poised to become the country’s top online music player following confirmation of its takeover of China Music Corporation. China Music operates China’s top- and third-ranking music platforms, Kugou and Kuwu. Tencent will increase its stake in the firm from 16% to 60% in a deal that values China Music at some $2.7 billion. The move will allow Tencent to create a combined music unit with its own QQ Music, which is the number two digital music platform in China. The new unit would have a more than 50% user base and control some 60% of available music rights in the country. That could allow it to increase the pace of transition from a music marketplace dominated by free and piracy to a paid for one Want to read more articles like this one?
Tencent has acquired China Music Corporation in a $2.7bn takeover, making Tencent China's largest online music player, with 50% of the user base and 60% of available music rights. China Music operates Kugou and Kuwu, the country's top and third-placed music platforms, while Tencent's QQ Music held second place. The deal is expected to close by year-end, according to people familiar with the matter.