The Chinese music streaming service Tencent Music raised $1.1 billion last week, in what was one of the largest U.S. public offerings of the year. Even if the price had risen, many music tech investors might have felt that Tencent Music still didn't live up to expectations. That still might happen down the road, but the fact that the IPO was scaled back shows that expectations around music tech have been tempered somewhat. There's a lot of room for free to paid user conversions in a country that still has growth left for streaming music. Of interest is that Tencent Music holds a 7.5% stake in Spotify, so there's some corporate synergy that may come into play in the future.

Source: Forbes December 15, 2018 18:56 UTC