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Chinese music platform Tencent Music Entertainment Group said on Tuesday it would buy long-form audio platform Ximalaya for about $2.4 billion in cash and stock, expanding its library of content to attract more paying users.
U.S.-listed shares of Tencent rose 7% in premarket trading.
The company will offer $1.26 billion in cash and Class A shares representing up to 5.20% of its total outstanding stock. It will also issue shares to Ximalaya’s founder investors not exceeding 0.37% of its total share count.
Tencent-backed China Ruyi raises $302 million in convertible bonds
The stock component of the deal totals about $1.15 billion based on Tencent Music’s last closing price on April 24, a day before Bloomberg News reported about the deal.
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