Tencent Music Fights Back Against Last-Minute IPO Lawsuit Challenge
A high-profile investor dispute has emerged just days before Tencent Music's IPO, with investor Hanwei Guo making significant claims against the company's leadership.
Guo alleges he owned 80% of Ocean Music (Tencent Music's previous name) through an investment worth "tens of millions of dollars." He claims Guomin Xie, Tencent Music Entertainment's Co-President, orchestrated a scheme using threats and misinformation to force him to surrender control of the company. Furthermore, Guo states he was denied shares during the company's IPO preparation.
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The case bears similarities to Spotify's pre-listing challenge, where Tanweer Khan made unsubstantiated claims about the company's ethics and his brother's role in the direct listing.
Tencent Music has responded by:
- Pledging to "vigorously" contest all claims
- Acknowledging potential "material adverse effects" on their reputation and business
- Warning about significant resource requirements for the legal process in China
- Noting possible future legal actions against the company and its officers
The company expressed concern that the lawsuit could divert management attention and impact their business operations, though they maintain their stance against the allegations.
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