Tencent Music is said to seek pre-IPO funds at $10 bn value

Tencent Music makes money via subscription, advertisement and sub-licensing its content

Tencent Music Entertainment Group, controlled by China’s biggest social network operator, is seeking new funding at a $10 billion valuation ahead of an initial public offering, people familiar with the matter said.

The operator of karaoke and Spotify-like streaming apps plans to sell about three per cent of its shares to strategic partners, including record labels, one of the people said, asking not be identified as the details are private. Tencent Holdings, owner of the WeChat messaging service, held about 62.45 per cent of the music group at the end of last year. 

By forging an equity link with record labels, Tencent