$300 Million – $600 Million US IPO Planned For China Based Streaming Music Service

IPOYou think that the Spotify vs. Apple Music vs. Tidal battles are interesting?  They are nothing compared to the music streaming competition heating up in the rest of the world

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image from d21buns5ku92am.cloudfront.netA music-streaming services that you’ve probably never heard of is planning a $300 million to $600 million U.S. IPO

China Music Corp, which is backed by Chinese Internet giant Tencent Holdings and operates Chinese digital music services Kugou and Kuwo  has hired Goldman Sachs and Morgan Stanley to prep a US IPO that could take place later this year, sources are telling the Wall Street Journal.

China is a huge market, with internet giants Alibaba and Baidu both already operating streaming music services there, as well.

Why A US IPO?

“Listing in the U.S. could become more attractive than other venues because China’s securities regulator has discussed potentially clamping down on backdoor listings at home,” according to the WSJ.  “A logjam of 700-plus businesses aiming for China IPOs has deterred some looking to relist domestically, as has the delay in plans to launch a Shanghai board for fast-growing and sometimes unprofitable tech companies.”

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