Movement Alert｜Tencent Music Rises 5.16% in Regular Trading, Continued Momentum Following Ximalaya Acquisition Completion

Market Focus05-27

On May 27, Tencent Music rose 5.16% in regular trading, trading at $9.27/share, with trading volume of $78.45 million. The stock continued its upward trajectory following the completion of the company's landmark acquisition of Ximalaya.

On the news front, Tencent Music announced the completion of its acquisition of Ximalaya on May 18, with total consideration comprising up to $1.26 billion in cash and approximately 175 million Class A ordinary shares, valuing the deal at roughly $2.7 billion. Ximalaya, with over 300 million monthly active users across all platforms, has become a wholly-owned subsidiary of Tencent Music, significantly strengthening its long-form audio capabilities.

CLSA issued a research note rating Tencent Music as Outperform with a US-listed target price of $15.4, noting that while the earnings impact is neutral, the company stands to benefit from a richer content ecosystem, cross-selling opportunities, and expanded distribution through WeChat Channels. Following regulatory approval on May 11, Tencent committed to relinquishing exclusive online audio licensing agreements, clearing the final hurdle for the transaction.

Within the Movies and Entertainment sector, Spotify Technology rose 2.03%, Live Nation Entertainment rose 0.68%, Walt Disney rose 0.13%, Warner Bros. Discovery fell 0.17%, and Netflix fell 0.97%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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