Ever heard of Tencent Music Entertainment (TME)?
If not, it could soon be the Spotify rival that you’re listening to on your smartphone if the Chinese-owned music streaming service has anything to say about it.
According to reports, TME is readying for an Initial Public Offering (IPO) Stateside, with a filing having already been made by its parent company Tencent over the past weekend.
TME is currently the most popular music streaming service in its native China, but seems to have its eyes set further afield, with the $500 billion valued company (Tencent) looking to shake things up in the music industry.
There isn’t a precise date on when the IPO will go live, but it is estimated that it could raise as much as $1 billion in funding and drive TME’s valuation as high as $30 billion.
That’s more than double its current $12 billion valuation, and if successful would certainly buck the recent trend of Chinese-owned companies suffering poor IPOs, as was the case with Xiaomi.
This isn’t the first time that a Tencent property has looked to spin off, as TechCrunch points out, with China Literature doing so late last year in Hong Kong and netting a substantial $1 billion in IPO funding in the process.
The end game is also unclear, especially as one of TME’s rivals would be Spotify, which also pulled off a direct listing in April, and shares some of the same investors as the Tencent-backed service.
Nevertheless it’s clear that Tencent’s sphere of influence is only set to grow, and very soon will be mentioned in the same breath as Facebook, Google, Amazon and the like.