Global music streaming giant Spotify and China’s Tencent Music Entertainment will buy minority stakes in each other’s businesses. The equity procedure is believed to result in Tencent Music Entertainment Group and Spotify both acquiring around 10% in each other’s companies. The rumours of the partnership which were doing the rounds for quite some time have been put to rest today when both the companies came out with official statements acknowledging the stock swap.
Spotify is the largest music streaming service in the world. It has been valued at over $15bn in recent private trades, while Tencent Music Entertainment which operates most popular social platforms in China is believed to be valued at around $10bn.