A consortium led by Tencent Music has reached a deal to buy up to 20 percent of Universal Music Group from Vivendi, valuing the music label at 30 billion euros ($34 billion).
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The French media conglomerate Vivendi has agreed to sell a 10 percent stake in Universal, which is home to the artists Taylor Swift, Kanye West and The Beatles. The consortium has the option to acquire up to another 10 percent of Universal at the same price or higher.
The deal will allow Universal to “further develop in the Asian market,” Vivendi said in a press release.
Shenzhen-based Tencent Music said it is “thrilled to join the consortium” and “intends to further deepen the cooperation with UMG and drive the development of music entertainment market in China.”
Tencent and Universal have plans for a second agreement, which will give the former the chance to buy a stake in the latter’s Greater China business.
Vivendi shares ticked up slightly on the news and were up 21 percent in 2019. Tencent Music was also higher but down 11.8 percent year to date.