Big things are coming from Spotify and China’s media giant Tencent Holdings Ltd!

The music streaming company and the music arm of Tencent have decided to make a huge investment… in each other. In order to increase core markets, the companies announced each will buy minority stakes in the other.

According to reports, the firms will swap up to 10 percent of stakes.

Spotify founder and CEO Daniel Ek offers up his insight on the trade: “This transaction will allow both companies to benefit from the global growth of music streaming.”

QQ Music, KuGou and Kuwo are all music service providers that fall under TME, which Tencent owns majority stake in. With Spotify being the current music streaming leader in North America and Europe, while Tencent leads China’s media market — these two companies are surely planning a powerhouse move.

TME Chief Executive Cussion Pang confirms: “TME and Spotify will work together to explore collaboration opportunities.”


Source: Reuters