TME(US:TME) 凤凰网财经·2025-06-10 14:37Core Viewpoint - Tencent Music Entertainment Group has signed an acquisition agreement to fully acquire Ximalaya for $1.26 billion in cash and stock, marking a significant consolidation in the online audio industry [1][2]. Group 1: Acquisition Details - The acquisition involves a cash payment of $1.26 billion (approximately 906 million RMB) and a stock component that grants Ximalaya shareholders up to 5.1986% of Tencent Music's total issued and outstanding Class A common stock [1]. - Additionally, based on Ximalaya's performance, Tencent Music will issue up to 0.37% of its total shares as incentives to Ximalaya's founding shareholders [1][2]. - The deal is subject to regulatory approvals, including antitrust reviews [2]. Group 2: Company Profiles - Tencent Music has a strong portfolio with popular brands like QQ Music, Kugou Music, and Kuwo Music, along with a large user base and extensive copyright resources [2]. - Ximalaya, a veteran player in China's online audio sector, achieved profitability in 2023 and is projected to have a net profit exceeding 500 million RMB in 2024 [2]. Group 3: Strategic Rationale - The merger is seen as a strategic response to the evolving industry landscape and technological changes, with both companies aiming to enhance innovation and user experience [3]. - Ximalaya's founders emphasized the importance of resource sharing and collaborative development to improve user experience and creator earnings [4]. Group 4: Operational Continuity - Following the acquisition, Ximalaya will maintain its existing brand, independent product operations, core management team, and strategic direction [2]. - As of June 10, 2025, Ximalaya has over 2,300 employees, and there will be no changes to their positions, salaries, benefits, or stock options [4].