Ahead of its launch, Spotify and the music group of China’s Tencent Holdings Ltd have aligned their interests for future negotiations with music labels.
On Friday, a report by the Wall Street Journal stated China’s Tencent Holdings Ltd and Sweden’s Spotify AB are in talks to swap stakes of up to 10% of each other’s businesses, ahead of their expected public listings next year.
The report, citing sources familiar with the matter at hand stated, the strategic deal aligns the two services in future licensing negotiations with major music labels.
According to sources familiar with the matter at hand, Spotify is expecting to file its intention with U.S. regulators regarding its IPO, which it expects to launch in the first half of 2018.
While Spotify’s spokeswoman declined to comment, Tencent did not immediately respond to a request for comment.