Tencent Holdings Ltd., China’s largest social media company, acquired a 10.4 per cent stake in Warner Music Group Corp., a bet on the industry’s long-term growth prospects following the U.S. music label’s US$1.9 billion initial public offering last week.

Tencent purchased 8 million Class A Warner Music shares, according to a regulatory filing Friday. The U.S. music group is controlled by billionaire Len Blavatnik through his ownership of Class B stock that has supervoting rights. At current prices, Tencent’s investment is worth about US$244 million.

That represents a quick gain from the initial price of US$25 a share that Warner Music fetched last week in its IPO. The company is the only separately traded major U.S. label. The largest, Universal Music Group, is owned by Vivendi SA, followed by Sony Corp.’s Sony Music Entertainment.

The industry is enjoying a long-running financial renaissance thanks to the popularity of streaming services like Spotify Technology SA and Apple Inc.’s Apple Music. Warner Music’s sales grew 12 per cent last year.

Shares of Warner Music rose 1.8 per cent to US$30.53 in New York. They have gained 22 per cent from the offering price.