China’s social media and games giant Tencent is poised to become the country’s top online music player following confirmation of its takeover of China Music Corporation.
China Music operates China’s top- and third-ranking music platforms, Kugou and Kuwu.
Tencent will increase its stake in the firm from 16% to 60% in a deal that values China Music at some $2.7 billion.
The move will allow Tencent to create a combined music unit with its own QQ Music, which is the number two digital music platform in China. The new unit would have a more than 50% user base and control some 60% of available music rights in the country.
That could allow it to increase the pace of transition from a music marketplace dominated by free and piracy to a paid for one.