Music streaming: Tencent owns 10 percent of Spotify - SupChina

Music streaming: Tencent owns 10 percent of Spotify

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Tech in Asia reports on Tencent’s latest global play: a deal to invest in the popular Swedish music streaming startup Spotify, which has 140 million users around the world, excluding China, where the service is not available. Spotify will also take a stake in Tencent Music Entertainment, the Shenzhen-based giant’s music subsidiary.

Tencent Music Entertainment runs three music streaming services in China and another outside the country, boasting a combined 600 million active users, or more than four times Spotify’s reach (though Spotify has far more paid subscribers). Although the terms of the deal were not disclosed, the Financial Times (paywall) cites sources who say the companies will swap just under 10 percent of each other’s equity.

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Sky Canaves

Sky Canaves previously reported for The Wall Street Journal in Beijing and Hong Kong, where she covered media, culture, social issues, and legal affairs, and served as the founding editor and lead writer of the WSJ’s China Real Time site. Prior to becoming a journalist, Sky worked in the China corporate law practice of Baker & McKenzie, and she has also taught journalism and media law at the University of Hong Kong. She speaks Mandarin and has accumulated more than a decade’s experience living, studying and working in China.