Uber Stock – Capital Calls: NetEase music spinoff hits right notes
Concise insights on global finance.
RIGHT ON CUE. China’s NetEase (9999.HK) is shoving its music-streaming business into the spotlight at a good time. The $78 billion video-games developer just unveiled plans to list its 62%-owned Cloud Village in Hong Kong. Details are scarce, but the subsidiary, which raised money at a mooted $7 billion valuation in 2019, is looking to raise $1 billion, IFR reported , citing unnamed sources.
NetEase plays second fiddle to Tencent (0700.HK), its $760 billion rival. Tencent Music Entertainment (TME.N), the titan’s slumping $26 billion answer to Spotify (SPOT.N), reported 615 mobile monthly active listeners in the three months to March, dwarfing NetEase’s 180 million.
Beijing’s newly aggressive trustbusters are looking into Tencent Music, however, and may force it read more to unwind past acquisitions and surrender exclusive licensing deals with major record labels. NetEase also recently struck a deal with Sony Music Entertainment, suggesting the pressure is having an effect. These harmonising events should make the spinoff a hit. (By Robyn Mak)
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