Does Hanwei Guo actually personal 80% Tencent Music? Or, forward the Chinese streaming music large’s IPO, are the trolls popping out the woodwork?
For months, Chinese conglomerate Tencent Holdings has been frantically making ready for its music division’s upcoming itemizing on Wall Street.
Originally set for October 18th, Tencent Music delayed its IPO because of turbulent market circumstances.
Now, following a truce between the US and China, executives have pushed ahead. Tencent Music will go public on December 12th, a uncommon transfer for large-scale IPOs.
Unlike Spotify, the Chinese streaming music large stays very wholesome and continues to make a prit.
For the 9 months ended September 30th, 2018, the corporate reported a prit $394 million. Last yr, Tencent Music reported $114 million in prits.
Once the corporate goes public, executives count on to lift as much as $1.41 billion from the IPO.
One individual, nevertheless, threatens to indefinitely delay Tencent Music’s public itemizing.
A mysterious ‘investor’ takes on a streaming music large.
Currently, Tencent Music owns three streaming music platforms in China – QQ Music, Kuguo, and Kuwo. In complete, the corporate counts over 700 million month-to-month lively customers with round 14 to 21 million subscribers.
According to Hanwei Guo, nevertheless, he hasn’t earned a dime from his early funding within the firm.
In a movement for discovery filed yesterday on the US District Court for the Southern District New York, Guo has made a robust declare in opposition to the Chinese streaming music large.
The “distinguished investor” allegedly invested in Tencent Music when it was recognized merely as Ocean Interactive Technology. He likens the funding to the “equal tens tens of millions .”
According to Guo, Tencent Music Entertainment Co-President Guomin Xie stole his belongings. Xie and different “conspirators” allegedly used misinformation, threats, and intimidation. Succumbing to the Co-President’s brutal ways, Guo offered his 80% shares in Tencent Music, initially referred to as Ocean Music.
Billing himself as a “sufferer fraud and coercion by the hands Mr. Xie,” Guo desires a US court docket to acquire data to be used in a pending arbitration in China. Guo claims he at present has a case in opposition to Xie and “Arbitration respondents” earlier than the China International Economic and Trade Arbitration Commission (CIETAC). The data, he says, will assist him regain management Tencent Music’s belongings. One Xie’s conspirators allegedly introduced him with “documentary professional” the conspiracy.
To that finish, Guo desires a court docket handy over details about Tencent Music’s IPO from a number of companies. This contains Deutsche Bank, JP Morgan, BA Merrill Lynch, Pierce, Fenner & Smith, and Morgan Stanley. Guo writes this data will enhance his case in opposition to Tencent Music on the CIETAC.
According to a spokesperson for Guo, it stays “unlawful and illegal” for the corporate to maneuver ahead with the IPO.
Unfortunately, little or no stays recognized about Guo and his declare. This begs the query whether or not the invention request will truly undergo or whether or not his claims have any validity.
After all, Guo has solely filed the invention request proper earlier than Tencent Music will go public. And, it’s solely pure for non-investors (i.e., trolls) to aim to prit from the corporate’s success.
You can view the lawsuit beneath.
Featured picture by UDTech (YouTube screengrab).