Tencent Music Entertainment Group is reportedly in advanced negotiations to acquire Chinese podcasting startup Ximalaya Inc. in a deal valued at approximately $2.4 billion, according to individuals familiar with the matter. The acquisition would significantly bolster Tencent Music’s ambition to become China’s equivalent of Spotify Technology SA.
The transaction is expected to be financed through a mix of cash and stock, the sources said, speaking on condition of anonymity due to the private nature of the talks. A formal agreement could be finalized within the coming weeks, though discussions are still ongoing and no definitive decisions have been made, they added.
Representatives for Tencent Music declined to comment, while Ximalaya also opted not to respond to inquiries.
Ximalaya, a privately held firm, is backed by major investors including Tencent, Baidu Inc., and Sony Music Entertainment. The company had previously filed for a Hong Kong IPO in 2021 but chose to delay the listing. According to its latest public filing, Ximalaya’s platform reached 303 million monthly active users in 2023.
Tencent Music, a leading digital music platform in China, operates well-known apps such as QQ Music, Kugou, Kuwo, and WeSing. It has expanded through both organic growth and strategic acquisitions. Listed on the New York Stock Exchange following a $1.1 billion IPO in 2018, Tencent Music has seen its shares rise about 17% this year, bringing its market valuation to around $20.6 billion.
