Tencent Music proposes acquisition of Ximalaya Inc.

Tencent Music proposes acquisition of Ximalaya Inc.

Tencent Music Entertainment Group (TME) has proposed the acquisition of Ximalaya Inc., a significant move in the Chinese music and audio entertainment landscape. According to a recent SEC filing, TME intends to acquire Ximalaya for a combination of $1.26 billion in cash and Class A ordinary shares [1]. This deal is expected to bolster TME's position in the online music and audio entertainment sector.

Under the proposed merger, Ximalaya's shareholders will receive a combination of cash and stock. The terms of the deal include the restructuring of some of Ximalaya's existing businesses, which will integrate into TME's operations [1]. Post-acquisition, Ximalaya will become a wholly-owned subsidiary of TME, further consolidating the company's market presence.

TME has been performing well financially. In 2024, the company reported revenue of 28.40 billion CNY, an increase of 2.34% from the previous year, and earnings of 6.64 billion CNY, a 35.04% increase [2]. The company's strong financial performance and robust growth in music subscription revenue have been driven by initiatives like the Tencent Music Super VIP tier, which has set a new standard in the industry [3].

Analysts have a positive outlook on TME's stock. According to a recent report, the average rating for TME stock is "Strong Buy," with a 12-month price forecast of $15.0, indicating a potential decrease of -18.96% from the latest price [2]. This acquisition could further enhance TME's market position and drive growth, potentially positively impacting the stock price.

The proposed acquisition of Ximalaya Inc. is a strategic move for TME, aiming to expand its reach and strengthen its market dominance in the Chinese music and audio entertainment sector. As the deal progresses, investors will closely monitor the integration process and its impact on TME's financial performance.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3SC0QR:0-tencent-music-entertainment-announced-proposed-acquisition-of-ximalaya-inc-sec-filing/
[2] https://stockanalysis.com/stocks/tme/
[3] https://www.hypebot.com/hypebot/2025/06/lessons-worth-learning-from-the-tencent-music-super-vip-tier.html