On Monday, Thai entertainment platform GMM Music announced that Tencent and Tencent Music Entertainment will acquire a 10% stake in the company for US$70 million (2.57 billion baht), marking a significant step in its spin-off strategy.
Tencent and its subsidiary Tencent Music will purchase this stake using a blend of cash and a minority interest in the music streaming app JOOX Thailand, placing GMM Music’s valuation at $700 million.
In July 2023, GMM Music’s parent company GMM Grammy greenlit a plan to separate the music division and take it public on the Stock Exchange of Thailand.
The agreement is poised to fuel GMM Music’s growth initiatives and drive innovation, as stated by the company.
“This collaboration will drive joint initiatives to extend our presence into new and more expansive markets, with China being a crucial focus area due to its vast market opportunities,” mentioned Phawit Chitrakorn, the CEO of GMM Music.
