China’s Tencent Music has completed an investment in Radio Music Warehouse, a music-for-business company that distributes content to shops offices and other workplaces.
The deal was announced this week with few financial terms disclosed. One of the few details shows that Tencent has been granted the right to increase its stake to a position of majority control.
“Radio Music has a professional music-for-business service system and comprehensive offline coverage resources. Through this investment, we will jointly explore music-for-business market to add value to our music ecosystem,” said Tony Yip, chief strategy officer of Tencent Music. “TME will offer more diversified music content to resolve the challenge of a shortage of content for music solutions to business, and develop brand-new content promotion and distribution models in to provide a stage for artists and high-quality work everywhere. We also look forward to a strong synergy between music-for-business service and our existing online music and social entertainment services, to bring users a more professional, immersive music experience that drives the healthy development of the music-for-business industry and the music industry as a whole.”
Tencent Music is part of the giant Tencent tech group, but has had its own share listing on the NASDAQ since December 2018. Tencent and Tencent Music recently completed the acquisition of a 10% stake in Universal Music Group.