Spotify and Tencent announce cross-shareholding deal
Issued on: Modified:
The world's biggest music streaming platform Spotify of Sweden and China's Tencent said on Friday they had agreed to take minority stakes in each other.
With the deal both companies would seek to "explore collaboration opportunities", they said in a joint statement.
Tencent's subsidiary Tencent Music Entertainment (TME) and Spotify will pay cash for unspecified shareholdings in each other, while the Tencent parent company will also invest in Spotify by buying existing shares in the Swedish company.
Tencent, which operates social media platforms in China, is also the country's largest online music services company, claiming hundreds of millions of users.
"We are delighted to facilitate this strategic collaboration between the two largest digital music platforms in the world," Tencent President Martin Lau said in the statement.
© 2017 AFP