Tencent Music Leisure Group (TME) is reportedly near buying Ximalaya, China’s largest audio content material platform, following months of negotiations, in response to a number of Chinese language media shops. The proposed deal, discussions round which began two months in the past, sees Ximalaya’s valuation considerably decreased, with firm administration reportedly signing off on the phrases. The transfer comes as Ximalaya struggles to take care of progress amid a stagnating audio business. Though the platform turned worthwhile in 2023, its income progress has slowed sharply from over 40% in 2021 to lower than 2% final yr. Efforts to diversify by podcasting have led to inside disagreements, leading to inconsistent technique execution. Ximalaya’s declining prospects mirror broader challenges in China’s audio market, the place client consideration is more and more dominated by brief video platforms. Regardless of earlier acquisition talks falling by, Tencent Music’s renewed curiosity alerts a strategic guess on consolidating its long-form audio ambitions after its personal podcasting platform, Penguin FM, shut down final yr. [Jiemian, in Chinese]

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