Chinese streaming giant Tencent Music Entertainment Group filed yesterday afternoon to be listed in the US, setting the stage for what may be the biggest US IPO for a Chinese company so far. Given the extreme profitability of streaming over the last year, investors are confident in the success of the endeavor.
A number of major labels have already partnered with Tencent Music, including Universal Music Group and Sony Music Entertainment. Tencent Music hopes to use the U.S. IPO to further its reach in Asia, rather than to directly compete with other major streaming services in the U.S.
In its filing with the SEC, Tencent Music reported revenue of $1.3 billion in revenue and $263 million in profits for the six months ending June 30. According to the filing, Warner Music Group and Sony Music Entertainment both recently acquired shares in the company for around $200 million. Its largest shareholders include its parent company at 58.1% and Spotify at 9.1%.