Tencent Music: Tune In, But Don’t Turn On Yet

The Chinese answer to Spotify will need to fill in a lot of gaps to justify a $25 billion valuation when it floats

China’s answer to Spotify is headed for an initial public offering. That is music to bankers’ ears, but investors may face a steep price to tune in.

Tencent Music Entertainment Group, controlled by China’s most valuable firm Tencent, is planning an IPO this year that could value it at more than $25 billion. That would put the company on par with Spotify, now worth about $28 billion.

Investors...