Music streaming company Spotify and the music arm of China’s Tencent Holdings Ltd will buy minority stakes in each other.
The deal will help Spotify, a music streaming leader in Europe and North America, and China-focused Tencent Music, to increase exposure to each other’s core markets.
It was reported that the firms were in talks to swap stakes of up to 10 percent in each other.
Tencent Music Entertainment Group (TME), a subsidiary of Tencent Holdings, and Spotify will buy new shares representing minority equity stakes in each other for cash.