Tencent is said to have approached Spotify with a view to acquiring the company to extend its burgeoning music business
Online PR News – 20-October-2017 – Hong Kong – Spotify has long been linked with going public in the U.S. but it has emerged that the company rebuffed the opportunity to sell to a major tech name earlier this year: Tencent, the Chinese internet giant valued at $380 billion.rnTencent is said to have approached Spotify with a view to acquiring the company to extend its burgeoning music business outside of China and Asia, a source with knowledge said.rnSpotify and Tencent both declined to comment.rnIt isn’t clear whether talks got to the point that a price was discussed between the two — Spotify’s intent on going public is clear so it may not have advanced to that stage — but it’s an interesting thread to pull.rnSpotify has emerged as the top music streaming service worldwide, with more than 140 million active users and 60 million paying customer. The 11-year-old company is reportedly valued at $13 billion, its primary rival is Apple, which launched its service years later and continues to play catch up.rnWilliam Lui of BCE Limited says it isn’t hard to see how Spotify would appeal to Tencent, which has spent time developing its music business. Its primary unit, Tencent Music, was spun out following a merger last year.rnIt’s already a veritable beast in its own right, with 600 million users of its three main services: QQ Music, Kugou and Kuwo. Tencent Music is to be seeking to raise capital from strategic investors at a $10 billion valuation ahead of a planned IPO.rnBut beyond that lucrative China-based business, Tencent has been exploring additional global markets and segments. It operates Joox, a freemium music service that has gained significant momentum in Southeast Asia where it competes with Spotify and others, earlier this year, too.