Chinese internet giant Tencent said it plans to spin off its streaming music service on a U.S. stock exchange.
In a statement issued on Sunday through the Hong Kong stock exchange, Tencent said the terms of the proposed spin-off, including offering size, price range and other details have not been finalized. The company added that details will be made "as and when appropriate."
Tencent provides services in music, social networking , e-commerce, mobile games, booking services and smartphones. Its messaging app WeChat is used by over 1 billion people each month.
Good sign for music industry?
The proposed listing can be read as a sign that the music industry is getting back on track, as more listeners take to streaming music through smartphone apps even as companies battle piracy and try to sign up more paying customers.
Tencent's major rival in music streaming, Spotify, debuted its own shares in April, structuring its listing to allow existing investors to sell directly to the public.
In a U.S. Securities and Exchange Commission filing last year, Spotify and Tencent announced a share swap in, as both sides took an undisclosed slice of the other for strategic purposes going forward.
According to the calculations by Thomson Reuters publication IFR in April, Spotify owns about 9 percent of Tencent Music, while Tencent owns a 7.5 percent stake in Spotify.
Tencent Music is seeking an initial public offering worth up to $4 billion, valuing it at about $25 billion, IFR reported in April, citing people familiar with the plans.
—CNBC's Shafi Musaddique and Reuters contributed to this article
