Tencent Music Entertainment Group (TME) finalized its acquisition of Ximalaya Inc. on Monday. The online audio platform is now a wholly-owned subsidiary of TME following a merger agreement signed on June 10, 2025.
TME paid up to $1.26 billion in cash for the transaction. The deal also involved the issuance of up to 175,288,891 TME Class A ordinary shares.
This acquisition expands TME’s footprint in the long-form audio market, specifically targeting podcasts and audiobooks. The integration aims to create synergies across TME’s ecosystem and enhance user engagement beyond music.
The move consolidates TME’s dominant position in China’s digital entertainment industry. It signals a strategic focus on the rapidly expanding audio entertainment sector.