Wed, Aug 07, 2019 - Page 10 News List

Vivendi, Tencent in talks ove 10% of Universal Music


Vivendi SA is in preliminary talks to sell a 10 percent stake in Universal Music Group to China’s Tencent Holdings Ltd (騰訊), a deal that would value the world’s biggest music business at 30 billion euros (US$33.6 billion).

Tencent can decide to double the stake under the same terms for a year and the two companies are considering ways to cooperate on strategy, Vivendi said in a statement yesterday.

Tencent could bring Universal Music closer to consumers in Asian markets that are relatively underserved by the world’s major music labels.

Vivendi said it hopes Tencent would help it to promote Universal’s stable of artists and identify talent in new markets.

Universal Music’s sales have surged along with the growth in subscription-based music streaming. That growth means it now contributes about 44 percent of Vivendi’s revenue and has triggered analyst valuations for it of about 33 billion euros.

Universal Music’s sales rose by about 19 percent in the first half of the year.

Tencent is also big in streaming. Last year it floated its Tencent Music Entertainment Group (騰訊音樂), whose growth in China mirrors that of Spotify Technology SA in the US and Europe.

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