Tencent Music Entertainment Group (TME) is reportedly close to acquiring Ximalaya, China’s largest audio content platform, following months of negotiations, according to multiple Chinese media outlets. The proposed deal, discussions around which started two months ago, sees Ximalaya’s valuation significantly reduced, with company management reportedly signing off on the terms. The move comes as Ximalaya struggles to maintain growth amid a stagnating audio industry. Ximalaya’s declining prospects mirror broader challenges in China’s audio market, where consumer attention is increasingly dominated by short video platforms. Despite previous acquisition talks falling through, Tencent Music’s renewed interest signals a strategic bet on consolidating its long-form audio ambitions after its own podcasting platform, Penguin FM, shut down last year.