EFTA00807414.pdf

Generated by PitchBook for Richard Kahn, HBRK tpitchBook Last Updated: 03-Sep-2018 Associates Tencent Music Entertainment Group (NYS) I Private Company Profile General Information pbID: 185834-26 Description Developer of a music streaming services platform designed to help creators post and share music and other audio files. The company's platform facilitates in uploading, recording, promoting and sharing originally created sounds to share music privately with their friends or publicly to blogs, sites and social networks, enabling them to distribute their work as well as the consumers to discover it. Company Status (as of 03-Sep-2018) The company is planning to spin out of Tencent Holdings and go public on the New York stock exchange under an undisclosed ticker symbol as of May 31, 2018. The expected offering amount is $30 billion. Previously, the company received $10 million of financing from Access Industries in January 2018. SonyATV Music Publishing and Universal Music Group also participated in the round. The company is being actively tracked by PitchBook. Entity Types Private Company Universe Private Equity Acquirer Parent Company Tencent Holdings Also Known As THE Primary Industry Application Software Formerly Known As China Music Other Industries Entertainment Software Business Status Generating Revenue Verticals TMT, AudioTech Ownership Status In IPO Registration Financing Status Private Equity-Backed Contact Information Primary Contact Primary Office Cussion Pang China Chief Executive Officer Top 5 Similar Companies # Name Competitor Financing Status HQ Growth Size Last Last Financing Location Rate Multiple Financing Amount Date/Type 1 Bubbl Formerly New York, 2018/M&A Accelerator/Incubator NY backed 2 Qluge Accelerator/Incubator Stavanger, 0.00% 0.20x Accelerator/Inc Backed Norway 3 SoundCloud Venture Capital- Berlin, 0.10% 5,254.40x 2017/Series F $169.50M Backed Germany EFTA00807414 4 Xingtone Venture Capital- Studio 0.46% 8.15x 2006/Series B 52.30M Backed City, CA 5 Patari Accelerator/Incubator Lahore, 1.32% 117.62x 2016/Seed 50.20M Backed Pakistan Current Executives (1) Name Title Board Office Phone Email Seats Cussion Pang Chief Executive China Officer Deal History (5) # Deal Type Date Amount Post-Val Status Stage 5. IPO 31-May- 530.00B Announced Generating Revenue 2018 4. Corporate 01-Jan-2018 510.00M Completed Generating Revenue 3. Secondary 15-Dec- $12.508 Completed Generating Revenue Transaction - 2017 Private 2. Merger/Acquisition 13-Jul-2016 51.198 $2.708 Completed Generating Revenue 1. Buyout/LBO 01-Jan-2014 560.00M $60.00M Completed Generating Revenue t Indicates an Add-On E Estimated Deal #5: IPO, 5308, Announced/In Progress; 31-May-2018 Deal Types IPO, Spin-Off Financing Private Equity- CEO/Lead Cussion Pang Deal Amount $30.008 Status Backed Mgt Financing Public Investment Site China Deal Status Announced/In Progress Source Business Generating Deal Date 31-May-2018 Status Revenue Deal Synopsis The company is planning to spin out of Tencent Holdings and go public on the New York stock exchange under an undisclosed ticker symbol as of May 31, 2018. The expected offering amount is $30 billion. ,t Not necessarily a summation of individual debt figures • Does not include grant funding E Estimated Sellers/Exiters (6) # Seller/Exiter Name Partial/Full Comments 1. Access Industries 2. PAG EFTA00807415 3. SonyATV Music Publishing 4. Spotify 5. Tencent Holdings 6. Universal Music Group E Estimated Advisors (3) # Advisor Name Service Type Hired By Comments 1. Bank of America Merrill Lynch Underwriter Tencent Music Entertainment Group 2. Morgan Stanley Underwriter Tencent Music Entertainment Group 3. The Goldman Sachs Group Underwriter Tencent Music Entertainment Group IPO Information Original Registration 31-May-2018 Date Current Registration In Registration Status Current Registration 31-May-2018 Status Date Exchange New York Stock Exchange Stock Info Type of Stock Common E Shares Sought and Price Per Share calculated using the Weighted Average Method Financials Financials - Fiscal Year 2017 All Financials in thousands, USD Deal Multiples Income Statement Balance Sheet Deal Size / Net 132.16 Total Revenue 999,600 Income Deal Size / 30.01 Revenue Cash Flow Ratios Multiples* Revenue % Growth 40.0% EFTA00807416  Data Origination Original Yes Calculated Yes Deal #4: Corporate, $10M, Completed; 01-Jan-2018 Deal Types Corporate Financing Private Equity- CEO/Lead Cuss on Pang Deal Amount S10.00M Status Backed Mgt Deal Status Completed Financing Corporate Site China Source Business Generating Deal Date 01-Jan-2018 Status Revenue Deal Synopsis The company received $10 million of financing from Access Industries in January 2018. SonyATV Music Publishing and Universal Music Group also participated in the round. t Not necessarily a summation ofindividual debt figures "Does not include grant funding E Estimated Investors (1) Investor Name Status Lead/Sole Comments 1. Access Industries New Investor Yes Amount: $10.00M E Estimated Advisors (1) # Advisor Name Service Type Hired By Comments 1. CYMelveny & Myers Legal Advisor Access Industries Financials Financials - Fiscal Year 2017 All Financials in thousands, USD Deal Multiples Income Statement Balance Sheet Deal Size / Net 0.04 Total Revenue 999,600 Income Deal Size / 0.01 Revenue Cash Flow Ratios Multiples* Revenue % Growth 40.0% Data Origination Original Yes Calculated Yes EFTA00807417 Deal #3: Secondary Transaction - Private, Completed; 15-Dec-2017 Deal Secondary Transaction - Financing Private Equity- Post $12.506 Types Private Status Backed Valuation Deal Completed Financing Corporate CEO/Lead Cussion Pang Status Source Mgt Deal Date 15-Dec-2017 Site China % 10.00% Business Generating Acquired Status Revenue Deal Synopsis A 10% minority stake in the company was acquired by Spotify on December 15, 2017 for an undisclosed amount. t Not necessarily a summation ofindividual debt figures "Does not include grant funding E Estimated Investors (1) Investor Name Status Lead/Sole Comments 1. Spotify New Investor Yes E Estimatt..! Advisors (1) # Advisor Name Service Type Hired By Comments 1. Simpson Thacher & Bartlett Legal Advisor Spotify Lead Partner: Alan Klein JD Stock Info % Owned by Buyer After 10.00% E Shares Sought and Price Per Share calculated using the weighted Average Method Financials Financials - Fiscal Year 2017 All Financials in thousands, USD Deal Multiples Income Statement Balance Sheet Valuation / Net 55.07 Total Revenue 999,600 Income Valuation / 12.51 Revenue Cash Flow Ratios Multiples* Revenue % Growth 40.0% EFTA00807418  Data Origination Original Yes Calculated Yes Deal #2: Merger/Acquisition, $1.19B, Completed; 13-Jul-2016 Deal Types Merger/Acquisition Financing Private Equity- Post $2.70B Deal Amount $1.198 Status Backed Valuation Deal Status Completed Financing Corporate CEO/Lead Cussion Pang Source Mgt Deal Date 13-Jul-2016 Site China % Acquired 44.00% Business Generating Status Revenue Deal Synopsis Tencent Holdings (HKG: 00700) acquired a 44% stake in the company for $1.188 billion on July 13, 2016. After the transaction, Tencent Holdings owns a 60% stake in the company. t Not necessarily a summation of individual debt figures "Does not include grant funding E Estimated Investors (1) Investor Name Status Lead/Sole Comments 1. Tencent Holdings Acquirer Yes Amount: $1.19B Form of Payment: Cash E Estimated Sellers/Exiters (1) # Seller/Exiter Name Partial/Full Comments 1. MG Partial E Estimate:: Stock Info % Owned by Buyer Before 16.00% % Owned by Buyer After 60.00% E Share's Sought and Price Per Share calculated using the Weighted Average l•feCiioa Financials Financials - Fiscal Year 2016 All Financials in thousands, USD EFTA00807419  Deal Multiples Income Statement Balance Sheet Valuation / Net 31.76 Total Revenue 714,000 Income Valuation / 3.78 Revenue Deal Size / Net 13.98 Income Deal Size / 1.66 Revenue Implied EV / Net 31.76 Income Implied EV / 3.78 Revenue Cash Flow Ratios Multiples* Data Origination Original Yes Calculated Yes Deal #1: Buyout/LBO, $60M, Completed; 01-Jan-2014 Deal Types Buyout/LBO Financing Private Equity- Post $60.00M Deal Amount 560.OOM Status Backed Valuation Deal Status Completed Financing Private Equity CEO/Lead Cussion Pang Source Mgt Deal Date 01-Jan-2014 Site China % Acquired 100.00% Business Generating Status Revenue Deal Synopsis The company was acquired by PAG and Tencent Holdings through a $60 million LBO in 2014 for an undisclosed sum. ,t Not necessarily a summation ofindividual debt figures Does not include grant funding E Estimated Investors (2) Investor Name Status Lead/Sole Comments 1. PAG New Investor No Fund 1: PAG Asia II 2. Tencent Holdings Acquirer No E Estimated Investors (6) Active Investors (5) EFTA00807420 Name Investor Type Holding Investor Board Related Deals Since Access Industries Corporation Minority Jan 2018 #4. Corporate: New Investor, Jan 2018, S10.00M #5. IPO: Seller, May 2018, $30.008 Spotify Corporation Minority Dec 2017 #3. Secondary Transaction - Private: New Investor, Dec 2017 #5. IPO: Seller, May 2018, $30.008 PAG Asset Manager Minority Jan 2014 #1. Buyout/LBO: New Investor, Jan 2014, 560.00M #2. Merger/Acquisition: Seller, Jul 2016, 51.198 #5. IPO: Seller, May 2018, $30.008 SonyATV Music Corporation Minority #5. IPO: Seller, May 2018, $30.008 Publishing Universal Music Group Corporation Minority #5. IPO: Seller, May 2018, $30.008 Acquirer (1) Name Investor Type Related Deals Tencent Holdings Corporation #1. Buyout/LBO: New Investor, Jan 2014, 560.00M #2. Merger/Acquisition: Follow-on, Jul 2016, 51.198 #5. IPO: Seller, May 2018, $30.008 Service Providers Service on a Deal (5) Service Provider Service Provided Service To Deal Date Deal Comments Name Bank of America Underwriter Tencent Music 31-May- 5 Merrill Lynch Entertainment 2018 Group Morgan Stanley Underwriter Tencent Music 31-May- 5 Entertainment 2018 Group The Goldman Sachs Underwriter Tencent Music 31-May- 5 Group Entertainment 2018 Group O1Melveny & Myers Legal Advisor Access 01-Jan-2018 4 Industries Simpson Thacher & Legal Advisor Spotify 15-Dec- 3 Bartlett 2017 EFTA00807421 Lead Partners on Deals (1) Service Providers - Buy Side (1) Name All Title Representing Deals Phone Email Deals Alan Klein JD 17 Partner, Mergers & Simpson Thacher & #3. Secondary +1(212) 455- Acquisitions Bartlett Transaction - 3188 Private: Dec 2017, Completed Investments I Buy Side (2) Company Deal Date Deal Type Deal Size Co-Investors Company Industry Lead Name Stage Partner KTVme 01-Apr-2018 Early Stage $19.06M 3 Generating Movies, Music VC (Series B) Revenue and Entertainment xSpotify 08-Dec-2017 Secondary 2 Profitable Entertainment Transaction - Software Private t Indicates an Add-On E Estimated x Investor Exited Deal Affiliates Parent Company (1) Name Industry Location Year Founded Tencent Holdings Application Software Shenzhen, China 1998 Sister Companies (9) Name Industry Location Year Founded Miniclip Entertainment Software Neuchatel, Switzerland 2001 Riot Games Entertainment Software Los Angeles, CA 2006 ZAM Information Services (B2C) Los Angeles, CA 2006 Grinding Gear Games Entertainment Software Auckland, New Zealand 2006 Supercell Entertainment Software Helsinki, Finland 2010 Tencent Thailand Media and Information Services Bangkok, Thailand 1998 (B2B) Flymeal Application Software Fort McMurray, Canada Tencent Industry Win-Win Fund Corporate Venture Capital Shenzhen, China 2011 EFTA00807422 Comsenz Internet Software Beijing, China 2001 Financials Key Metrics (TTM) 12 Months Ending 12 Months Ending 12 Months Ending Dec 2018 Dec 2017 Dec 2016 Amounts in thousands, USD (except Start: 31-Dec-2017 Start: 31-Dec-2016 Start: 31-Dec-2015 Ratios, Multiples & per share items) End: 31-Dec-2018 End: 31-Dec-2017 End: 31-Dec-2016 Income Statement Total Revenue 2,600,000 999,600 714,000 Ratios Revenue % Growth 160.1% 40.0% Data Origination Preliminary No No No Original Yes Yes Yes Restated No No No Calculated Yes Yes Yes News Tencent Music set to IPO in October, with expected $30bn valuation NewsNow 127-Aug-2018 Tagged entities: Tencent Music Entertainment Group, Morgan Stanley, NASDAQ, New York Stock Exchange, The Goldman Sachs Group US Investors Reportedly Value Tencent Music At Around $30B US Investors Reportedly Value Tencent Music At Around $30B China Money Network I 27-Aug-2018 Tagged entities: Alibaba Group Hong Kong stocks end higher amid upbeat company earnings, led by casino groups; Cathay Pacific drifts lower after first half loss Hong Kong's stock market rose for a third day after a slew of robust corporate earnings announcements and the rebound in the Chinese currency. Mainland Chinese markets fell however as worries over... South China Morning Post I 08-Aug-2018 Tagged entities: Tencent Music Entertainment Group, Anhui Sun Create Electronics, Cathay Pacific Airways, Galaxy Entertainment Group, Post Community Credit Union, Sunac China Holdings, Tencent Holdings Spotify Technology S.A. : Announces Financial Results for Second Quarter 2018 net (139 ... I juillet 26, 2018 4-traders I 26-Jul-2018 Tagged entities: Tencent Music Entertainment Group Tencent Holdings Second season of 'The Rap of China' returns to promote 'positive' rap music featuring 'Chinese elements' EFTA00807423 Earlier this year, Chinese Hip Hop music experienced an unexpected downturn after critics accused the genre of promoting misogyny and drug use. Now it looks like the genre might finally be making an official comeback as popular music competition s... Global Times I 12-Jul-2018 Tagged entities: Tencent Music Entertainment Group 5 Things to Know About Tencent Music Entertainment's IPO NewsNow 112-Jul-2018 Tagged entities: Tencent Music Entertainment Group Tech giant's disappointing debut casts a cloud over Chinese IPOs in Hong Konq NewsNow 111-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Bloomberg, China Renaissance, MCM Partners, Razer, Ryan Roberts, Tencent Holdings, Xiao lia Li ID Knight Bridge Investment Consultants Limited - Announces Planned Access to Tencent Music Entertainment IPO in New York It was announced just a few days ago, Tencent Holdings Ltd plans to list its music streaming service in New York before the end of 2018. Alternative Emerging Investor I 10-Jul-2018 Tagged entities: Tencent Music Entertainment Group Tencent Music to go public in US Tencent Music, the operator of a streaming platform thats majority-owned by Chinese internet giant Tencent, has announced plans to conduct an IPO in the US. Tencents own stock is listed in Hong Kong. Earlier reports of the offering indicated the... PitchBook I 10-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Access Industries, Bank of America Merrill Lynch, Spotify, Tencent Holdings Tencent's music streaming unit to list shares in US bourse Tencent Holdings Ltd's plan to spin off its music-streaming unit and list shares in the United States marks the fresh revival of an industry that has often been plagued by piracy, industry experts said. China Daily I 09-Jul-2018 Tagged entities: Tencent Music Entertainment Group Tencent (TCEHY) Stock Closes up 2.3% on Big Music and Gaming News Chinese tech giant Tencent (TCEHY) made headlines Monday with news that it is preparing a US IPO of its music business, along with reports that it is expanding its international gaming presence through the launch of its own international PC market... Zacks I 09-Jul-2018 Tagged entities: Tencent Music Entertainment Group, An lo-Austrian Patisserie, Apple, China Literature, Facebook, South China Morning Post, Spotify, Twitter, Ubisoft Entertainment China's music-streaming Tencent seeks IPO in U.S. NewsNow 109-Jul-2018 Tagged entities: Tencent Music Entertainment Group, South China Morning Post IPO Watch: Tencent Finds Its Voice BEIJING (dpa-AFX) - Tencent, one of the largest tech company in China, is planning to spin off its online music business and list its shares in the U.S.Tencent, in a statement, said it will list FinanzNachrichten I 09-Jul-2018 EFTA00807424 Tagged entities: Tencent Music Entertainment Group Tencent To List Online Music Arm In U.S. Chinese tech giant Tencent Holdings Ltd. said it plans to list its online music business in the U.S. In a statement through the Hong Kong Stock Exchange, Tencent said it plans to spin off its online music entertainment business on a U. RTT News I 09-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Spotify Tencent to spin off its music business and list its shares in the U.S. Tencent to spin off its music business and list its shares in the U.S. VentureBeat I 09-Jul-2018 Tagged entities: Tencent Music Entertainment Group Tencent Music gets go-ahead for US flotation Tencent Holdings is planning to list its digital music distribution arm in the US, according to a filing with the Hong Kong Stock Exchange on Sunday. Global Capital Asia 09-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Tencent Holdings Tencent Proposes A Spin-off: Tencent Music To File A Separate US IPO Tencent Proposes A Spin-off: Tencent Music To File A Separate US IPO China Money Network 108-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Alibaba Group Tencent seeks to list online music unit in U.S. Chinese internet giant Tencent Holdings Ltd said it is looking to spin off and list its online music business, China's biggest music-streaming company, in the United States. Thomson Buyouts I 08-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Spotify, Tencent Holdings Tencent seeks to list its music arm in the US NewsNow 108-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Alibaba Group, Apple, Bank of America Merrill Lynch, Dcci, Morgan Stanley, Singtel, Sony, The Goldman Sachs Group Tencent to spin off online music unit in US Companies & Markets News -HONG KONG (REUTERS) - Tencent Holdings has submitted a proposal to the Stock Exchange of Hong Kong to seek a separate listing of its online music entertainment business on a recognised stock exchange in the United States.... The Straits Times 108-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Tencent Holdings Tencent streaming spinoff to list shares in U.S. amid music industry comeback The planned IPO, which could raise at least S1 billion, will let American investors bet on the Chinese market for music- streaming services, which have brought new life to a business that's been plagued by piracy. Los Angeles Times I 08-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Bloomberg, Osprey Media (Three Weekly Newspapers and a Speciality Wine Magazine) Tencent to spin-off online music unit Tencent Music for US listing EFTA00807425 Tencent, the Chinese social media and gaming juggernaut, has proposed to spin-off its online music streaming business Tencent Music for a separate listing in the US, which could also profit Spotify... South China Morning Post 08-jul-2018 Tagged entities: Tencent Music Entertainment Group, China Literature, Spotify Tencent plans US listing of music unit NewsNow 108-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Alibaba Group, Tencent Holdings Tencent plots IPO for its online music business NewsNow 108-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Bloomberg Tencent Plans Spinoff, U.S. Listing of Online Music Business NewsNow 108-Jul-2018 Tagged entities: Tencent Music Entertainment Group, Bloomberg, Huatai Securities Copyright X) 2018 PitchBook Data, Inc. All rights reserved. Provided under contract for the exclusive use of subscriber Richard Kahn, HBRK Associates . EFTA00807426