Tencent Music (TME, Financial) is turning up the volume on its streaming ambitions. The company is reportedly in advanced talks to acquire Chinese podcasting heavyweight Ximalaya in a $2.4 billion cash-and-stock deal. If sealed, this could be Tencent Music's boldest move yet to transform into China's Spotify equivalent—blending music, karaoke, and now, long-form podcasting under one roof. The deal is still in flux, but sources say it could be finalized in the coming weeks. Both firms have declined to comment publicly, keeping things under wraps for now.

Ximalaya is no small fish. The app boasts over 300 million monthly users and has long dominated the podcasting scene in China. It previously shelved plans for a Hong Kong IPO, but Tencent, Baidu, and Sony Music remain among its heavyweight backers. For Tencent Music, the acquisition is a strategic leap beyond music streaming into the booming world of spoken-word content. Think audio books, podcasts, talk shows—sticky content that builds time-on-app and attracts ad dollars.

TME shares have already jumped 17% this year, giving the company a market cap north of $20.6 billion. It's no stranger to deal-making—Tencent Music has scaled up through a steady diet of acquisitions since its $1.1 billion IPO in 2018. But this one could redefine its core identity. With the Ximalaya deal, Tencent Music isn't just chasing growth—it's laying the foundation for a full-stack audio empire in China.