Global Media Conglomerate Tencent Buys Portion of Universal Music Group
China-based international entertainment, artificial intelligence, technology , and media company Tencent Holdings Limited has acquired 10% OF Univeral Music Group (UMG) for $3.6B.
Digital entertainment company Vivendi sold it's portion of UMG to the Chinese conglom. With that out the way, talks have already begun regarding the sale of “an additional minority share for a price which would at least be identical.” The deadline to buy the other chunk of UMG is January 15, 2021.
Tencent’s music division will also acquire a minority stake in UMG’s operation in China.
A press release states:
“Vivendi is very happy with the arrival of Tencent and its co-investors,” the two companies said in a joint statement. “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.”
The deal gives UMG an overall value of $34b. Vivendi closed Tuesday at $28.95, a rise of .4%.
UMG CEO Sir Lucian Grainge said in a statement:
"This is an exciting development reflecting a strong validation of our business strategy, our incredible team and your excellent work. It also reflects our shared optimism about UMG’s continued role as the driving force in our industry and how focused we are on the future."