GMM Music has entered a strategic partnership with China's largest online music and audio entertainment platform Tencent Music Entertainment (TME) and leading tech company Tencent.
As part of the agreement, TME and Tencent will obtain a 10% stake in the Thai entertainment company for USD 70 million, with consideration of cash and minority stake of music streaming platform, JOOX Thailand.
The historic deal values GMM Music at USD 700 million, and marks a significant milestone for the company as it drives its spin-off plan. The partnership 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. 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."
With the investment to JOOX Thailand, parent company GMM Grammy moves to capitalize on tech leading with streaming platforms. GMM Music also aim to achieve "fandom economy" with the new partnership, combining tech expertise 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," as well as creating new business opportunities with activities and channels that bring artists and fans together across Thailand, China, and the rest of the world.
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