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Tencent to merge its QQ Music service with digital music business of China Music Corporation

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David Carter
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The deal follows Tencent agreeing this week to increase its stake in CMC from 16% to 60%

Tencent Holdings is to merge its music streaming service, QQ Music, with the online music business of China Music Corporation CMC , leading to the creation of a new digital music company, Tencent announced.

Tencent, China's biggest social-networking and online-games company, added that it would hold majority stake in the new company, which could even issue an initial public offering IPO in the future.

While Tencent said it would fully support the business efforts of the new company, Martin Lau, president at Tencent was quoted by Reuters as saying: "The new company will be the flagship for Tencent's digital music and related businesses."

The Shenzhen, China, headquartered Tencent has not revealed any financial or valuation details.

However, a person having knowledge of the deal said the combined entity would be valued at about $6bn £4.49bn, €5.39bn .

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David Carter
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