Tencent Music Fights Back Against Last-Minute IPO Lawsuit Challenge
Tencent Music faces a legal challenge days before its IPO from investor Hanwei Guo, who claims he was forced to give up his 80% ownership stake in Ocean Music (now Tencent Music) through intimidation and misinformation.
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Key Claims:
- Guo invested "tens of millions of dollars" for an 80% stake in Ocean Music
- Co-President Guomin Xie allegedly orchestrated a scheme to strip Guo of his shares
- Guo received no shares during Tencent Music's IPO preparation
- A co-conspirator provided "documentary proof" of the alleged scheme
Tencent Music's Response:
- Company vows to "vigorously" contest all claims
- Acknowledges potential "material adverse effect" on reputation and finances
- Warns of significant resource requirements for legal proceedings in China
- Notes possible future legal actions against company leadership
This case mirrors a similar situation faced by Spotify before its direct listing, where Tanweer Khan made unproven claims about the company's ethics and his brother's role in the listing.
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