The Chinese conglomerate has confirmed a considerable stake in WMG following the launch of their IPO earlier this month.
Chinese music giant Tencent Music Entertainment have spread their fingers into yet another pot of the worldwide music industry. With the purchasing of a large stake in Warner Music Group, Tencent now have assets in many of the biggest music companies around the world including competitors for their own services.
They revealed last week that they had purchased $100 million in common stock in Warner Music Group after the label went public on Wall Street earlier this month. That’s 5.2% of the Class A shares for Warner and 0.8% of WMG overall.
Tencent reportedly bought their shares for £25 a share, the price which Warner launched at. They saw huge interest and confidence as soon as they hit the market and by the end of the first day had surpassed $30 in stock value and ended their first week only a little under $30.
Tencent run three of China’s leading streaming services and boast the biggest music streaming userbase in Asia. They also have stakes in competitors in Asia and further abroad, including Spotify and Indian streaming service Gaana.