Tencent, Tencent Music to pick up 10% stake in Thailand's GMM Music for $70 mln (updated)

Tencent Music Entertainment

03/06/2024 08:05

(Adds details of deal, context in paragraphs 2-5)
       June 3 (Reuters) - Thai entertainment platform GMM Music
on Monday said Tencent  0700.HK  and Tencent Music Entertainment
 1698.HK  will acquire a 10% stake in the company for $70
million, solidifying its spin-off plan.       
    Tencent and its controlled entity Tencent Music will buy the
stake through a combination of cash and a minority stake in
music streaming app JOOX Thailand, valuing GMM Music at $700
million.
    In July 2023, GMM Music's parent company GMM Grammy
 GRAMMY.BK  approved a plan for spinning off the music unit and
listing it on the Stock Exchange of Thailand.    
    The deal will help GMM Music expand its business and fund
innovation, the company said.
    "This partnership will lead to cooperative efforts in
expanding our business into new and larger markets, where China
is one of the key target territories with its immense market
potential," Phawit Chitrakorn, chief executive officer of GMM
Music said.

        
  

 (Reporting by Adwitiya Srivastava in Bengaluru; Editing by
Mrigank Dhaniwala)
 ((Adwitiya.Srivastava@thomsonreuters.com;))