Chinese online music and audio entertainment platform Tencent Music Entertainment (TME) and parent Tencent Holdings have picked up a 10% stake in Thai company GMM Music for about $70 million, according to an announcement on Monday.
As part of the deal that values GMM at $700 million, the Chinese companies will pay an undisclosed cash sum and offer a minority stake in JOOX Thailand, the local unit of a music streaming company owned by Tencent.
GMM Music operates an integrated music business that includes artist selection and management, music production, marketing, rights management, digital and physical music product distribution, and concert and festival promotions.
“The investment will solidify our spin-off plan, with an ambition to drive the New Music Economy in Thailand towards sustainable growth. This partnership will lead to cooperative efforts in expanding our business into new and larger markets, where China is one of the key target territories with its immense market potential,” said GMM Music CEO Phawit Chitrakorn in a statement.
GMM Music, established in 2023, is a subsidiary of the Stock Exchange of Thailand-listed GMM Grammy Public Company. The latter approved an initial public offering (IPO) plan for its flagship music unit in July last year. Per an SET disclosure, the shares on offer will not exceed 30% of GMM Music’s total paid-up capital.
“We believe there is solid support for the success of the company’s IPO. Fundamentally, we also strive to drive sustainable growth with continuous exchange of competencies and know-how, extending markets and sales beyond territories, and contributing deep resources in user insight and technology for future music innovations,” said GMM Music CMO Fahmai Damrongchaitham in the statement issued on Monday.
The deal also includes an unspecified investment in JOOX Thailand, which would enable GMM Grammy to leverage streaming technology to drive its growth. The Thai company said TME’s tech expertise, combined with GMM Music’s content management, is also expected to enhance platform experiences and ongoing collaborations with other labels.