Recently, the well-known Thai entertainment company GMM Music announced that Chinese internet giant Tencent and its music entertainment platform Tencent Music Entertainment Group (TME) will acquire 10% of its shares for $70 million.
It is reported that Tencent and Tencent Music Entertainment will complete this share acquisition through cash payment, combined with their minority stake in the music streaming application JOOX in Thailand. This move has raised GMM Music’s overall valuation to $700 million.
According to reports, GMM Music is the music department under GMM Grammy, and GMM Grammy is Thailand’s largest international record company, occupying over 60% of the market share in Thailand. In July last year, GMM Grammy had already approved plans to spin off its music department and list on the Thailand Stock Exchange. The cooperation with Tencent and Tencent Music Entertainment will undoubtedly provide strong support for GMM Music’s listing plan and business expansion.
Phawit Chitrakorn, CEO of GMM Music, is looking forward to this collaboration. He stated that this partnership will drive the company’s expansion into larger new markets, especially the Chinese market where he sees tremendous market potential.
At the same time, Tencent Music Entertainment Group also released its financial report for the first quarter of 2024. The report shows that Tencent Music’s revenue in the first quarter was 67.7 billion yuan, a slight decrease from the 70 billion yuan in the same period last year, but its adjusted net profit increased by 23.9% year-on-year to reach 18.1 billion yuan, demonstrating strong profitability.
SEE ALSO: Tencent Music’s Q2: User Growth and Entertainment Decline
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