China’s Tencent look to buy 10% of Universal Music
As Vivendi finally look to start selling stakes in Universal Music, Chinese media conglomerate Tencent are looking to buy in.
Vivendi have been leading up to selling stakes in Universal’s major record label for over a year and it’s finally coming to fruition. As one of the 3 major record labels worldwide Universal Music Group is massive institution and the giant Chinese media company Tencent are eyeing a big piece of the pie.
Reports earlier in the year suggested that Tencent Music were looking to acquire up to a 50% stake in Universal Music Group (UMG). There are now confirmations from both parties that Vivendi will sell a 10% stake in UMG to Tencent. Vivendi have said they they hope the sale will “improve the promotion of UMG’s artists.”
Vivendi said in a statement: “Vivendi and Tencent are also concurrently considering areas of strategic commercial cooperation. In this context, Vivendi is keen to explore enhanced cooperation which could help UMG capture growth opportunities offered by the digitalization and the opening of new markets.”
Tencent will have a one-year option to purchase an additional 10% of UMG once the deal is finalized. The label’s music is distributed worldwide and is available on many of Tencent’s Asian apps and services. Vivendi are hoping to complete a deal selling up to 50% of UMG by the start of 2020.