Tencent Music reportedly nears acquisition of troubled audio platform Ximalaya at discounted valuation

Tencent Music Entertainment Group (TME) is reportedly close to acquiring Ximalaya, China’s largest audio content platform, following months of negotiations, according to multiple Chinese media outlets. The proposed deal, discussions around which started two months ago, sees Ximalaya’s valuation significantly reduced, with company management reportedly signing off on the terms. The move comes as Ximalaya struggles to maintain growth amid a stagnating audio industry. Although the platform turned profitable in 2023, its revenue growth has slowed sharply from over 40% in 2021 to less than 2% last year. Efforts to diversify through podcasting have led to internal disagreements, resulting in inconsistent strategy execution. Ximalaya’s declining prospects mirror broader challenges in China’s audio market, where consumer attention is increasingly dominated by short video platforms. Despite previous acquisition talks falling through, Tencent Music’s renewed interest signals a strategic bet on consolidating its long-form audio ambitions after its own podcasting platform, Penguin FM, shut down last year. [Jiemian, in Chinese]