Music streaming services Spotify and Tencent Music Holdings have agreed to invest minority stakes in one another, both companies announced on Friday.
Why it matters: The investments could allow each company to expand their global footprints. Tencent Music's parent company is a dominant force in China's social internet economy, and has recently made investments in American companies like Snapchat. Spotify has been working to go public through a direct listing, and an investment from Tencent could help convinvce shareholders that it has global appeal.
Deal details: Financials haven't been disclosed, but reports suggest each company acquired roughly 10% in one another. Tencent Inc. also is investing in Spotify through secondary purchases, making both Tencent Inc. and Tencent Music Holdings minority stakeholders in the streaming giant.