Internet giant Tencent and its music subsidiary, Tencent Music Entertainment, have acquired 10.4% of the ordinary shares of Warner Music, in their latest effort to access the music libraries of the world’s biggest recording labels.
The companies now each hold 4 million class A common shares in Warner, which went public on the Nasdaq earlier this month, according to twin filings to the U.S. Securities and Exchange Commission Friday. Tencent bought the stake through its wholly owned subsidiary Huang River Investment Ltd.
The share buy comes two months after a Tencent-led consortium, including Tencent Music, bought a 10% stake in Universal Music from France’s Vivendi. At the time, Tencent Music said access to Universal’s huge library would help cement its position as a top music services provider in China.
Tencent Music’s practice of signing exclusive licensing agreements with the world’s top recording labels has angered its domestic rivals, which accuse it of monopolistic behavior.
In 2019, China’s State Administration of Market Regulation started an investigation into Tencent Music’s exclusive licensing deals with Universal Music, Sony Music Entertainment and Warner Music. But the probe was suspended in late January this year, with no reason given, Bloomberg reported in February.
Contact reporter Ding Yi (yiding@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)
Related: Tencent Music Reports Moderate Revenue Growth in Q1
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