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Tencent and China Music Corporation announce strategic merger in digital music business

By Meng Jing (chinadaily.com.cn) Updated: 2016-07-15 13:49

China Music Corporation and QQ Music under internet giant Tencent Holdings Ltd announced on Friday a strategic merger of their digital music businesses.

The merger of the two market leaders will combine Tencent's QQ Music service with CMC to form a new company, where Tencent will become the majority shareholder.

Tencent will fully support the new company to develop its digital music business, paving the way for an initial public offering.

According to a statement on Friday, the merger of the two market leaders is aimed at providing superior online music streaming experiences to users, as well as fostering an industry structure built upon authorized music rights and a freemium business model in China.

QQ Music, CMC's KuGou and Kuwo will continue to manage their existing brands and operations independently. Users can enjoy existing streaming services, and have access to a broad range of fun and innovative products provided across these platforms.

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