Generated by PitchBook for Richard Kahn, HBRK tpitchBook Associates Last Updated: 03-Sep-2018

Generated by PitchBook for Richard Kahn, HBRK tpitchBook Associates Last Updated: 03-Sep-2018 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 Also Known As Formerly Known As Business Status Ownership Status Financing Status Private Company Acquirer THE China Music Generating Revenue In IPO Registration Private Equity-Backed Universe Parent Company Primary Industry Other Industries Verticals Private Equity Tencent Holdings Application Software Entertainment Software TMT, AudioTech Contact Information Primary Contact Cussion Pang Chief Executive Officer Primary Office China Top 5 Similar Companies # Name Competitor Financing Status HQ Growth Size Location Rate Multiple Last Last Financing Financing Date/Type Amount 1 2 Bubbl Qluge Formerly Accelerator/Incubator backed Accelerator/Incubator Backed New York, NY Stavanger, Norway 0.00% 0.20x 2018/M&A Accelerator/Inc 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 Cussion Pang Title Chief Executive Officer Board Seats Office China Phone Email Deal History (5) # Deal Type Date Amount Post-Val Status Stage 5. IPO 31-May-530.00B Announced Generating Revenue 4. Corporate 2018 01-Jan-2018 510.00M Completed Generating Revenue 3. Secondary 15-Dec- $12.508 Completed Generating Revenue Transaction - Private 2017 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 Deal Amount $30.008 Deal Status Announced/In Progress Deal Date 31-May-2018 Financing Status Financing Source Private Equity- CEO/Lead Cussion Pang Backed Mgt Public Investment Site China Business Generating 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 1. Access Industries 2. PAG Partial/Full Comments EFTA00807415 3. SonyATV Music Publishing 4. Spotify 5. Tencent Holdings 6. Universal Music Group E Estimated Advisors (3) # Advisor Name 1. Bank of America Merrill Lynch 2. Morgan Stanley 3. The Goldman Sachs Group Service Type Hired By Underwriter Underwriter Tencent Music Entertainment Group Tencent Music Entertainment Group Underwriter Tencent Music Entertainment Group Comments IPO Information Original Registration Date Current Registration Status Current Registration Status Date Exchange 31-May-2018 In Registration 31-May-2018 New York Stock Exchange Stock Info Type of Stock E Shares Sought and Price Per Share calculated using the Weighted Average Method Common Financials Financials - Fiscal Year 2017 All Financials in thousands, USD Deal Multiples Income Statement Deal Size / Net Income Deal Size / Revenue Cash Flow 132.16 30.01 Total Revenue Ratios 999,600 Revenue % Growth 40.0% Balance Sheet Multiples* EFTA00807416 Data Origination Original Calculated Yes 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 Deal Date 01-Jan-2018 Source Business Generating 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 of individual 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 Deal Size / Net 0.04 Income Deal Size / Revenue Cash Flow Data Origination Original Calculated 0.01 Yes Yes Income Statement Balance Sheet Total Revenue 999,600 Ratios Multiples* Revenue % Growth 40.0% 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 of individual 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 Calculated Yes 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 E Estimated Yes Amount: Form of Payment: $1.19B Cash Sellers/Exiters (1) # Seller/Exiter Name Partial/Full Comments 1. MG Partial E Estimate:: Stock Info % Owned by Buyer Before % Owned by Buyer After E Share's Sought and Price Per Share calculated using the Weighted Average l•feCiioa 16.00% 60.00% 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 of individual debt figures Does not include grant funding E Estimated Investors (2) Investor Name 1. PAG 2. Tencent Holdings E Estimated Status Lead/Sole Comments New Investor No Acquirer No Fund 1: PAG Asia II Investors (6) Active Investors (5) EFTA00807420 Name Access Industries Spotify PAG Investor Type Corporation Corporation Asset Manager SonyATV Music Corporation Publishing Universal Music Group Corporation Acquirer (1) Name Tencent Holdings Investor Type Corporation Holding Investor Since Minority Jan 2018 Minority Dec 2017 Minority Jan 2014 Minority Minority Board Related Deals #4. Corporate: New Investor, Jan 2018, S10.00M #5. IPO: Seller, May 2018, $30.008 #3. Secondary Transaction - Private: New Investor, Dec 2017 #5. IPO: Seller, May 2018, $30.008 #1. Buyout/LBO: New Investor, Jan 2014, 560.00M #2. Merger/Acquisition: Seller, Jul 2016, 51.198 #5. IPO: Seller, May 2018, $30.008 #5. IPO: Seller, May 2018, $30.008 #5. IPO: Seller, May 2018, $30.008 Related Deals #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 Name Service Provided Bank of America Underwriter Merrill Lynch Morgan Stanley Underwriter The Goldman Sachs Underwriter Group O1Melveny & Myers Legal Advisor Simpson Thacher & Legal Advisor Bartlett Service To Tencent Music Entertainment Group Tencent Music Entertainment Group Tencent Music Entertainment Group Access Industries Spotify Deal Date Deal 31-May- 2018 31-May- 2018 31-May- 2018 01-Jan-2018 15-Dec- 2017 5 5 5 4 3 Comments EFTA00807421 Lead Partners on Deals (1) Service Providers - Buy Side (1) Name All Title Deals Alan Klein JD Representing Deals Phone Email 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 Stage Name KTVme 01-Apr-2018 Early Stage $19.06M 3 Generating Movies, Music VC (Series B) Revenue and Entertainment xSpotify 08-Dec-2017 Secondary Transaction - Private t Indicates an Add-On E Estimated x Investor Exited Deal 2 Profitable Entertainment Software Partner Affiliates Parent Company (1) Name Tencent Holdings Industry Location Application Software Shenzhen, China Year Founded 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) Amounts in thousands, USD (except Ratios, Multiples & per share items) Income Statement Total Revenue Ratios Revenue % Growth Data Origination Preliminary Original Restated Calculated 12 Months Ending Dec 2018 Start: 31-Dec-2017 End: 31-Dec-2018 2,600,000 160.1% No Yes No Yes 12 Months Ending Dec 2017 Start: 31-Dec-2016 End: 31-Dec-2017 999,600 40.0% 12 Months Ending Dec 2016 Start: 31-Dec-2015 End: 31-Dec-2016 714,000 No Yes No Yes No Yes No 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