Tencent Music shares rise over 6% pre-market; to acquire Himalaya Holdings for USD 1.26 billion.

Tencent Music shares rise over 6% pre-market; to acquire Himalaya Holdings for USD 1.26 billion.

Tencent Music Entertainment Group (TME) saw its shares rise by over 6% in pre-market trading on June 10, 2025, following the company's announcement of a proposed acquisition of Himalaya Holdings. Under the proposed deal, Himalaya's shareholders will receive a combination of cash of $1.26 billion and stock of Class A ordinary shares from TME [3].

The acquisition aims to expand TME's footprint in the digital content and music streaming market. TME, already a dominant player in China with over 60% market share, seeks to leverage Himalaya's strengths in audio content and podcasts to further enhance its offerings. The proposed acquisition also signals TME's strategic move to integrate more deeply into the emerging markets segment, which is expected to drive significant growth in the coming years [2].

In addition to the acquisition, TME's strong financial performance in the first quarter of 2025 has been a key driver for its share price increase. The company reported a 16.6% year-over-year growth in music subscription revenue, driven largely by the popularity of its Super VIP (SVIP) tier, which offers premium features such as high-quality audio and exclusive access to events and merchandise [1].

The proposed acquisition of Himalaya Holdings is a strategic move that aligns with TME's long-term growth strategy. By integrating Himalaya's audio content and podcast offerings, TME aims to create a more comprehensive digital content platform that can attract and retain a broader user base. This acquisition also positions TME to capitalize on the growing demand for audio content and podcasts, a segment that is expected to see significant growth in the coming years [2].

The acquisition is subject to regulatory approval and other customary closing conditions. TME expects the transaction to close in the second half of 2025, pending regulatory approvals and other closing conditions.

References:
[1] https://www.hypebot.com/hypebot/2025/06/lessons-worth-learning-from-the-tencent-music-super-vip-tier.html
[2] https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/06/45750281/spotify-stock-smashes-records-goldman-sees-200-billion-music-streaming-market-by-2035
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3SC0QR:0-tencent-music-entertainment-announced-proposed-acquisition-of-ximalaya-inc-sec-filing/