China’s Tencent in talks to buy $ 200 million from Warner Music – report

<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "China's Tencent Holdings Ltd. (TCEHY), the world’s largest online gaming company, is in talks to invest $ 200 million in the Warner Music Group, according to a Wall Street Journal report. “data-reactid =” 12 “> China’s Tencent Holdings Ltd. (TCEHY), the world’s largest online gaming company, is in talks to invest $ 200 million in the Warner Music Group, according to a Wall Street Journal report.

The step stands before the record company’s IPO, which is planned for the coming week. Tencent is one of a number of other potential institutions that could act as anchor investors to raise more than $ 1 billion for a donation goal of up to $ 1.8 billion. Warner Music is expected to value the offering at $ 11.7 billion to $ 13.3 billion.

Warner Music plans to evaluate its IPO on June 2 and trade on the Nasdaq the next day.

Last week, Tencent announced a five-year plan to invest 500 billion yuan ($ 70 billion) in technology infrastructure. The investment focuses on cloud computing, artificial intelligence and cybersecurity as well as blockchain, servers, big data centers, supercomputer centers, operating systems for the Internet of Things, 5G networks and quantum computers.

Tencent stocks have risen 28% since mid-March as home-stay orders increased demand for online gaming products. The stock rose 4% to $ 54.32 on Friday.

Oppenheimer’s five-star analyst Jason Helfstein, who has a buy rating for the company with a target price of $ 58, believes that although Tencent is the world’s largest online gaming company, innovation continues to gain market share .

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“There are still enough runways for the burgeoning advertising business with the largest online audience in China,” Helfstein wrote in a message to investors. “We see great potential in the company’s new initiatives: mini-programs, cloud and video. The success of any of these products would significantly improve the company’s entire ecosystem. “

In particular, all six analysts dealing with Tencent stocks are optimistic about the outlook, leading to a firm consensus with a strong buy. The average analyst price target of $ 60.50 indicates an upside potential of 11% over the current level. (See Tencent Holdings stock analysis on TipRanks)

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