Ximalaya Acquired by Tencent Music Entertainment | Technology M&A Deal

Tencent Music Entertainment has completed the acquisition of Ximalaya, a SaaS business in China, for $2.4 billion. Ximalaya operates a large audio platform for podcasts and audiobooks, giving Tencent Music Entertainment a direct entry into long-form spoken-word content in China. Tencent Music Entertainment acquisitions expand its QQ Music, Kugou Music, and Kuwo Music ecosystem by adding Ximalaya’s monthly active user base and content distribution capabilities. The merger acquisition is a strategic acquisition by a strategic buyer, with Ximalaya becoming a wholly-owned subsidiary after regulatory clearance by China’s State Administration for Market Regulation. Under the terms, Ximalaya shareholders received up to $1.26 billion in cash and up to 175.3 million Tencent Music Entertainment Class A shares.