June 3 (Reuters) - Thai entertainment platform GMM Music

on Monday said Tencent ( TCTZF ) and Tencent Music Entertainment ( TME )

will acquire a 10% stake in the company for $70

million, solidifying its spin-off plan.

Tencent ( TCTZF ) and its controlled entity Tencent Music will buy the

stake through a combination of cash and a minority stake in

music streaming app JOOX Thailand, valuing GMM Music at $700

million.

In July 2023, GMM Music's parent company GMM Grammy

approved a plan for spinning off the music unit and

listing it on the Stock Exchange of Thailand.

The deal will help GMM Music expand its business and fund

innovation, the company said.

"This partnership will lead to cooperative efforts in

expanding our business into new and larger markets, where China

is one of the key target territories with its immense market

potential," Phawit Chitrakorn, chief executive officer of GMM

Music said.