Chinese tech giant Tencent and its music unit Tencent Music will acquire a 10% stake in GMM Music, as part of a strategic partnership leading its eventual spin-off from parent GMM Grammy.
The deal is valued at around $70 million, says GMM Grammy, and will also see the Chinese companies take a minority stake in GMM-owned streaming firm JOOX Thailand.
GMM Music, which owns labels like Gene Lab, White Music and GNEST, says the partnership will enable it to “expand its business, achieve sustainable growth, acquire world-class expertise, and invest in future music innovations to keep pace with the rapid evolution of the global music industry“.
In July 2023, GMM Grammy approved plans to eventually spin off GMM Music as a standalone company, with the latter to also list on the stock exchange.
GMM Music CEO Phawit Chitrakorn says the partnership will provide a “massive bridge of opportunities” not just for the company, but for the Thai music industry.
He adds: “This partnership will lead to cooperative efforts in expanding our business into new and larger markets, where China is one of the key target territories with its immense market potential.”
Apart from a change in shareholding, the partnership will also cover “further explorations” in music co-production between Tencent Music and GMM Music, as well as co-creation of concerts and music festivals.
“The partnership will also make fandom economy possible, creating new business opportunities by offering activities and channels that bring artists and fandom together, across Thailand, China, and other countries,” says GMM Music.
