The Chinese tech giant is on an acquisition spree yet again, even though markets plummet across the world due to the Covid-19 pandemic. As per the latest news, Tencent has gained around 200 million dollars stake in the Warner Bros music company called as Warner Music Group.
Tencent Buys 200 Million Dollar Stake in Warner Music Group
The figures were not clear as different news sites claimed different amounts of the stake being procured, however later, it was confirmed via news from the Wall Street Journal that the price was 200 Million dollars.
Transactions happened on June 3
Tencent Music Entertainment, a music streaming sub-company of the Tencent procured the 4m Class A common stock shares in WMG on June 3. it is $100 Million value in the stock. However, Huang River Investment Limited, a subsidiary of Tencent Holdings, also purchased 4m class of those shares, making the total investment of 200 Million by Tencent in the Warner Bros Music.
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Music companies having stakes in each other
The Chinese company has been investing in the major music streaming platforms, making it a more complex mesh of various music and streaming companies having a stake in each other. Spotify and Tencent have nearly 10 percent stake in each other; on top of it, Tencent Holdings also has almost 10 percent stake in the Universal Music Group.
Tencent procured stake in two transactions.
The news is rife that Tencent may buy an additional 10 percent in the Warne Music Group. Warner opened a part of its business in the Nasdaq in New York, and On the same day, the company acquired shares in the company through two transactions from Tencent Music and Huang River Investment.