Tencent Music: Cash in an aggregate amount of $1.26 billion

Tencent Music: Cash in an aggregate amount of $1.26 billion

Tencent Music Entertainment Group (TME) has announced a proposed acquisition of Ximalaya Inc., with a total consideration of $1.26 billion, according to a recent SEC filing. The deal involves a combination of cash and stock, with Ximalaya shareholders receiving $1.26 billion in cash and Class A ordinary shares [1].

Under the proposed merger, Ximalaya will become a wholly-owned subsidiary of Tencent Music. The acquisition aims to strengthen TME's position in the music streaming market and expand its offerings. The deal also includes a restructuring of some of Ximalaya's existing businesses [1].

The acquisition aligns with TME's strategy of growing its subscriber base and revenue. In Q1 2025, TME reported a 16.6% year-over-year growth in music subscription revenue, driven by the success of its Super VIP (SVIP) tier. The SVIP tier, available on all TME platforms, offers premium features such as high-quality audio, exclusive content, and social interaction opportunities [2].

Analysts have been optimistic about TME's financial prospects. Several firms have upgraded their ratings and raised their price targets for TME shares, reflecting the company's strong financials and growth prospects [3].

The acquisition of Ximalaya Inc. is expected to be completed in the coming months, subject to regulatory approvals. This deal underscores TME's aggressive expansion strategy and its commitment to maintaining its dominant position in the Chinese music streaming market.

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://www.hypebot.com/hypebot/2025/06/lessons-worth-learning-from-the-tencent-music-super-vip-tier.html
[3] https://www.cnn.com/markets/stocks/TME

Ask Aime: Is Tencent Music's acquisition of Ximalaya Inc. a strategic move to expand in the Chinese music streaming market?