Photo Credit: Kuke Music
China’s classical platform’s stock skyrockets following the announcement of a controlling interest in indie classical music company Naxos Music Group.
Kuke Music Holding Limited, a leading classical music services platform in China, has announced the acquisition of a controlling interest in Naxos Music Group, one of the world’s largest independent classical music companies. Following the announcement, Kuke’s stock skyrocketed 240% in after-hours trading on Thursday.
The Chinese classical music platform completed two transactions totaling around $106.35 million to secure a 70.43% interest in Naxos One Holding Limited, which controls Naxos Music Group.
Under the terms of the agreement, which was signed on September 17, Kuke first subscribed for 17,500 newly issued Class B ordinary shares of Naxos One at $6,000 per share, for a total of $105 million. The company then acquired 108 Class A ordinary shares from existing shareholder Desun Holding Limited at $12,500 per share, for a total of $1.35 million.
“This strategic acquisition of Naxos Music Group represents a landmark transaction that will significantly enhance our position as a leading classical music services platform,” said Peixian Tan, Chairman and CEO of Kuke Music. “Naxos’ world-class content library, combined with its proven global distribution capabilities, creates compelling synergies with our existing music education and technology platforms.”
Established in 1987, Naxos Music Group has become a leading classical music label with a global distribution network. Headquartered in Hong Kong, the company was a pioneer in digital music streaming in 1996.
Kuke is a leading classical music service platform in China encompassing the entire “value chain,” from content provision to music learning services. The platform boasts approximately 3 million audio and video music tracks.
The foundation of Kuke’s expansive classical music content library is its unrivaled access to over 900 top-tier labels and record companies. By collaborating with its strategic global business partner Naxos, Kuke further leverages its market leadership in international copyrighted classical music content.
