Is Tencent Music Entertainment Stock a Buy?
Tencent Music Entertainment's (NYSE: TME) stock price recently tumbled to a fresh 52-week low after China's State Administration for Market Regulation (SAMR) ordered the streaming music giant to give up its exclusive licensing rights for online music. The move wasn't surprising, since the SAMR has been scrutinizing TME's exclusive licensing deals over the past four years.
TME previously appeased the SAMR by sublicensing most of its music to other platforms, but its competitors accused it of charging inflated fees to drive them out of the market. TME then agreed to lower its sublicensing fees, but the SAMR's ruling indicates those changes weren't adequate.
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Source Fool.com
