China's ByteDance Ltd is in talks with music labels for expanding its music-streaming service globally to compete with industry leaders such as Spotify Technology SA, The Wall Street Journal reports.
The TikTok parent plans to eventually integrate music streaming within its short-video service and scale it to serve as a major platform for distributing music globally, according to the report that cited people with knowledge of the discussions.
Shares of Spotify pared gains to trade flat in after-market trading on Wednesday, while Warner Music Group Corp gained 4%.
ByteDance did not immediately respond to a Reuters request for comment.
The company had discussed in recent months launching its Resso music-streaming service, currently available in India, Indonesia and Brazil, in more than a dozen additional markets, but expansion to the United States isn't immediately on the cards, according to the report.