June 04, 2024 – According to Reuters, Thai entertainment company GMM Music announced on Monday that Tencent and Tencent Music Entertainment (TME) will acquire a 10% stake in the company for $70 million.
The acquisition, which values GMM Music at $700 million, will be made through a combination of cash and a minority equity stake in JOOX Thailand, a music streaming application owned by Tencent and its controlled entity, Tencent Music.
In July 2023, GMM Grammy, the parent company of GMM Music and an international record company that occupies more than 60% of the Thai market, approved a plan to spin off its music division and list it on the Thai stock exchange. The company stated that this transaction will help GMM Music expand its business and fund innovations.
Phawit Chitrakorn, CEO of GMM Music, expressed his enthusiasm for the partnership, saying, “This partnership will enable us to expand our business into new and larger markets, with China being a key target due to its enormous market potential.”
Meanwhile, Tencent Music released its financial results for the first quarter of 2024 on May 13th, reporting revenue of 6.77 billion yuan, compared to 7 billion yuan in the same period last year. Its adjusted net profit for the quarter increased by 23.9% year-on-year to 1.81 billion yuan.
This strategic investment by Tencent and TME in GMM Music is seen as a significant move to strengthen their foothold in the Southeast Asian music market, and specifically in Thailand, where GMM Music holds a prominent position. The partnership is expected to bring about synergies and growth opportunities for both parties involved.
