Spotify has long been linked with going public within the U.S. — it’s imagined to be getting ready for an IPO-less record subsequent year — but it has emerged that the enterprise rebuffed the chance to promote to an incredible tech name previous this 12 months: Tencent, the chinese web large valued at $ 380 billion.
Tencent is said to have approached Spotify with a purpose to buying the business to lengthen its burgeoning music enterprise outdoor of China and Asia, a supply with competencies of discussions told TechCrunch.
Spotify and Tencent both declined to comment when we acquired involved.
It isn’t clear even if talks acquired to the point that a cost become discussed between the two — Spotify’s intent on going public is obvious so it may no longer have advanced to that stage — however’s a captivating thread to pull.
Spotify has emerged because the true tune streaming carrier international, with more than one hundred forty million energetic users and 60 million paying consumer. The eleven-year-historic business is reportedly valued at $ 13 billion, its primary rival is Apple, which launched its provider years later and continues to play catchup. Apple tune reached 27 million paying users this previous June.
It isn’t hard to peer how Spotify would attraction to Tencent, which has spent time establishing its track enterprise. Its primary unit, Tencent track, changed into spun out following a merger between Tencent’s QQ song business and China song Corp final yr.
It’s already a veritable beast in its own right, with 600 million users of its three main functions: QQ tune, Kugou and Kuwo. Tencent track is mentioned to be looking for to raise capital from strategic investors at a $ 10 billion valuation ahead of a deliberate IPO.
however past that profitable China-based mostly enterprise, Tencent has been exploring additional international markets and segments. It operates Joox, a freemium tune service that has gained significant momentum in Southeast Asia the place it competes with Spotify and others, and made a big investment in karaoke app maker Smule past this 12 months, too.
Spotify, which is latest in over 60 countries, could hugely amp up that international focus. nonetheless it isn’t to be.
Spotify’s outdated big identify suitors have included Google and, erm, MySpace. Spotify itself has tried on more than one occasion to buy Soundcloud. the ten plus acquisitions Spotify has closed had been commonly small, skill-led offers that boost its carrier or tech.
Fundings & Exits – TechCrunch