One of the world’s biggest music labels is being eyed up by Chinese conglomerate for a potentially massive stake acquisition.
Tencent, the massive Chinese company responsible for much of the biggest music tech happenings in Asia, have set Universal in their sights. According to reports, Tencent Music are in serious talks about acquiring as much as 50% of major label Universal Music Group (UMG).
French media conglomerate Vivendi SA are looking at a group of potential “strategic buyers” to buy stakes in UMG, according to reports. Tencent Music Entertainment are one of the front runners looking at a giant stake in the major label, an acquisition which would be a massive bolster to Tencent’s worldwide music industry influence.
Analyst for Macquarie Group Ltd., Giasone Salati said to Bloomberg: “When I think about the UMG deal, I think about the play ‘Waiting for Godot’. Why pre-announce the deal such a long time in advance instead of just doing so once the deal has been agreed upon? Still, maybe it helps the stock price of Vivendi.”
As well as Tencent there are a series of other potential purchases eyeing up the major music label. This includes: Apple, private equity firm KKR, and Liberty Media who already own stakes in massive music related entities like music streaming companies Pandora and Sirius XM, and Live Nation concert ticketing company.