Tencent Music to Acquire Ximalaya for $2.4 Billion

Tencent Music Entertainment Group has agreed to acquire Ximalaya, a major Chinese podcast and audio platform with over 300 million monthly users, for approximately $2.4 billion in cash and stock. The deal consists of $1.26 billion in cash and up to 5.57% of Tencent Music's Class A ordinary shares, with some shares allocated to Ximalaya's founding investors. Ximalaya will maintain its brand, management, and operational autonomy following the transaction, and assures partners and users that existing contracts and rights will be honored. The acquisition is subject to regulatory and antitrust approvals and involves the restructuring of certain Ximalaya business units prior to closing. This move is expected to significantly expand Tencent Music's influence in China's podcasting market and accelerate its evolution into a comprehensive digital audio platform. Following the announcement, Tencent Music's shares rose amid positive investor sentiment.