It appears the Chinese colossal Tencent and Spotify are seriously bent on investing in each other’s businesses, as quoted in a recent Wall Street Journal report.
The deal includes one major bonus for both companies in a probable hook up during the licensing negotiation phase which will take place between major music labels and publishers.
Tencent Music’s valuation is reportedly up to $10bn thanks to a recent financing boost.
Whereas Spotify was recently valued at $16bn as far as private trades were concerned.
Last year Tencent spent a whopping sum to secure a majority stake in $2.7bn-valued China Music Corp, thereby placing two key music platforms – Kuwo and KuGou – under their control.
Tencent services, together with its own QQ Music can now boast over 700m in monthly active users.
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