Tencent Music gets conditional approval for acquisition of Ximalaya 

Chinese online music platform giant Tencent Music Entertainment's (1698) proposed acquisition of audio platform Ximalaya for US$1.26 billion (HK$9.83 billion) has been conditionally approved by the Chinese regulator on Tuesday.

The US listing share of the company ​​rose 8.7 percent in pre-market trading to US$9.99.

The regulatory authorities have required Tencent Music and Ximalaya to comply with five restrictive commitments aimed at reducing competitive impact, protecting the rights and interests of all parties, and ensuring fair market competition.

Separately, Tencent Music reported on Tuesday that its net profit dropped 51.3 percent to 2.09 billion yuan (HK$2.41 billion) for the first quarter.

Adjusted net profit increased 7 percent to 2.27 billion yuan.

Its total revenues increased 7.3 percent to 7.9 billion yuan, primarily due to strong growth in revenues from music related services.

Revenues from music related services rose 12.2 percent to 6.51 billion yuan. Revenues from social entertainment services and others decreased 11 percent to 1.38 billion yuan.

 

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