Is Tencent Music’s business model sustainable?

Tencent Holdings (00700.HK) is implementing a corporate restructuring plan that aims to turn the internet giant into an enterprise-focused service provider. While doing so, the company is spinning off some of its valuable assets.

In its latest move, Tencent has filed for the listing of its music entertainment arm in the United States, which will involve an initial public offering that seeks to value the unit at US$25 billion.

Tencent Music Entertainment Group is China’s biggest online music and social platform which runs…