By Rita Liao
China’s largest music streaming service has had a whirlwind year. With 800 million monthly users across multiple apps and a profitable business, Tencent Music Entertainment is gearing up for one of this year’s most anticipated initial public offerings in the US. But the firm has landed in hot water in the months leading up to its first-time shares sale.
Last week, Chinese investor Hanwei Guo accused TME’s co-president of using misinformation, threats and intimidation to compel him to sell his equity stakes in Ocean Music, which eventually became part of TME after Tencent’s QQ Music and China Music Corporation merged in 2016.
Han has filed a motion for discovery in the US seeking information from Deutsche Bank AG, JPMorgan Chase & Co., Bank of America Corp. and other underwriters for TME’s IPO that the investor plans to use in an arbitration underway in China. The investor is requesting TME co-president Guomin Xie Guo and other parties involved to return percentages of his equity stakes in the music vehicle and compensate him for economic losses.
Han claims that he invested an equivalent of $26 million in Ocean Music in 2012 after Xie’s repeated invitation. Xie first …read more
Source: Tech Crunch