NEW YORK (CelebrityAccess) – Vivendi has sold a 10 percent stake in Universal Music Group (UMG) to a consortium led by Tencent, valuing the company at $33.6bn USD.
The Tencent-led consortium includes Tencent Music Entertainment Group (TME) and undisclosed “global financial investors”.
In a joint statement, the companies said: “Vivendi is very happy with the arrival of Tencent and its co-investors. They will enable UMG to further develop in the Asian market. Tencent and the Consortium members are excited to support UMG’s growth through this investment. Together with Vivendi, Tencent and TME will work to broaden the opportunities for artists and to enrich experiences for music fans, further promoting a thriving music and entertainment industry.”
According to the companies, the consortium has the option to increase its stake in UMG to as much as 20% at the same valuation within the first year. Additionally, both parties have confirmed that negotiations have already begun on a second deal that would grant Tencent Music Entertainment “an additional minority share” in UMG’s business within the Chinese market.
The transaction will be subject to regulatory approvals and is expected to close by the end of the first half of 2020.
