GMM Music Announces Strategic Partnership with Tencent Music Entertainment Group and Tencent, with a Strategic Investment Valuing GMM Music at $700 Million USD
BANGKOK, June 3, 2024 /PRNewswire/ -- GMM Music today announced a strategic partnership with Tencent Music Entertainment Group (TME), the leading online music and audio entertainment platform in China, and Tencent, a globally recognized internet and technology company. As part of this agreement, TME and Tencent will obtain a 10% stake in GMM Music, with consideration of cash and minority stake of JOOX Thailand, valuing the company at US$700 million. This partnership marks a significant milestone for GMM Music, which aims to drive the New Music Economy in Thailand. The collaboration will strengthen GMM Music's spin-off plan, and will enable GMM Music 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.
Phawit Chitrakorn, Chief Executive Officer of GMM Music, said, "As the music industry is entering the second wave boom, with revenue surpassing all time high and continuing on the upswing, GMM Music has developed a new strategic roadmap to drive our future growth, along with continuously improving the infrastructure for the Thai music industry. One of our key strategies is to develop collaborative partnerships with international music industry leaders, who believe in the potential of Thai Music. We are greatly delighted that TME and Tencent have agreed to make a strategic investment in GMM Music by acquiring 10% of our shares for approximately 70 million USD, unlocking the company value of 700 million USD. The investment will solidify our spin-off plan, with an ambition to drive the New Music Economy in Thailand towards sustainable growth. 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. Undoubtedly, this investment partnership will serve as a 'massive bridge' of opportunities for our industry to move forward into new ventures, as well as bringing the Thai music industry to the next level of international recognition, growth, business performances, and financial sustainability, elevating the industry as a whole."
Fahmai Damrongchaitham, Chief Marketing Officer of GMM Music, added, "Through this partnership, TME and Tencent will fuel GMM Music in accelerating growth, allowing us to capture new levels of opportunities in the emerging market, while enhancing our capabilities with the best of global music resources. We will be in the position to become - 'The Next Asia's Dragon.' This enables us to create 'Upscale Opportunities' to expand in all aspects of the music business. The company will make advances in the Music and Digital Businesses, which is the key driver for growth in the future of music industry, and expand in the Artist and Showbiz Businesses, bringing our talents to Asia and to the World through networks of global outreach from both TME and Tencent. Together, we have ambitions to 'Uplift Quality' of the Thai music economy with world-class production resources and collaborations. The partnership will extend to further explorations in Music and Artist co-productions, along with co-creations of Concerts and Festivals, and more. By combining forces, our possibilities of synergies will significantly Unlock the True Value of GMM Music. We believe both partners will contribute to the company's long-term development and bring exponential upsides to the company. We believe there is solid support for the success of the company's IPO. Fundamentally, we also strive to drive sustainable growth with continuous exchange of competencies and know-how, extending markets and sales beyond territories, and contributing deep resources in user insight and technology for future music innovations. This Strategic Partnership is truly a giant step forward for GMM Music, as an important milestone into the new era of the music industry."
In addition, the partnership will include an investment into JOOX Thailand. A strategic move for GMM Grammy to capitalize on technology business with Streaming Platforms as a key driving force of the music industry, and a stimulus to propel the Thai Music Industry into the growth trend alongside the music market worldwide. The partnership will combine the technological strength from TME to develop advanced platform experience for the new generation of audiences, together with the content management strength from GMM Music, adding on to the ongoing collaborations with all other music labels. 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. With these multi-faceted efforts, GMM Music reinforces its competitive strength as it is gearing up for the IPO journey.
SOURCE GMM Music
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