Davis Polk advised Tencent and Tencent Music Entertainment in connection with their equity investments with Spotify. TME and Spotify will acquire new shares representing minority equity stakes in each other for cash. In addition, Tencent will invest in Spotify through secondary purchases. Following these transactions, Spotify will hold a minority stake in TME, and both Tencent and TME will hold minority stakes in Spotify.

Tencent, which owns a majority stake in TME, operates the most popular social platforms in China and has a proven record of investing in innovative technology companies. TME is an early mover in authorized digital music and is the largest online music services company in China. It provides a rich catalogue of digital music services including streaming, online live broadcasts and karaoke, serving hundreds of millions of users. Spotify operates the world’s largest music streaming service.

The Davis Polk corporate team includes partners Miranda So and Howard Zhang, counsel-registered foreign lawyer Brian J. Snyder and registered foreign lawyer Xi Shi. Members of the Davis Polk team are based in the Hong Kong and Beijing offices.