iStock/Thinkstock(NEW YORK) — The world’s largest music streaming service and one of the most popular social platforms in China are investing in each other.
Spotify and China’s Tencent Music Entertainment (TME) are expected to buy minority stakes in one another in cash, though the value of the deal and the shareholding sizes have not been disclosed.
Spotify CEO Daniel Ek said, “Spotify and Tencent Music Entertainment see significant opportunities in the global music streaming market for all our users, artists, music and business partners. This transaction will allow both companies to benefit from the global growth of music streaming.”
Spotify operates in more than 60 countries, but it has yet to break into the Chinese market.
On the other end, Tencent Music Entertainment CEO Cussion Pang said, “We are excited to embark on this partnership with the largest music streaming platform in the world. TME and Spotify will work together to explore collaboration opportunities, with a common objective to foster a vibrant music ecosystem that benefits users, artists and content owners.”
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