Tencent acquires China Music Corporation for $2.7bn
Tencent has acquired China Music Corporation in a $2.7bn takeover, making Tencent China's largest online music player, with 50% of the user base and 60% of available music rights. China Music operates Kugou and Kuwu, the country's top and third-placed music platforms, while Tencent's QQ Music held second place. The deal will see China's music marketplace move to a paid-for service.

China’s social media and games giant Tencent is poised to become the country’s top online music player following confirmation of its takeover of China Music Corporation.

China Music operates China’s top- and third-ranking music platforms, Kugou and Kuwu.

Tencent will increase its stake in the firm from 16% to 60% in a deal that values China Music at some $2.7 billion.

The move will allow Tencent to create a combined music unit with its own QQ Music, which is the number two digital music platform in China. The new unit would have a more than 50% user base and control some 60% of available music rights in the country.

That could allow it to increase the pace of transition from a music marketplace dominated by free and piracy to a paid for one