Tencent Holdings Ltd.
TCEHY -0.50%
The music giant is doubling its stake behind Ariana Grande and Billy Elish.
The Chinese internet company said on Friday that it was leading a consortium that had agreed to buy an additional 10% stake in Universal Music Group from Vivendi VVHYV. 1.93%
SE, the world’s largest music business, in a deal worth ૦ 1 billion to the equivalent of 8 8 billion.
The deal adds to Tencent’s growing presence in the record industry and exposure to some of its biggest names in music. Universal’s stabilization includes classic acts like Queen and the Beatles, and he recently bought Bob Dylan’s full publishing catalog.
The purchase comes almost a year after a consortium led by Tencent, which includes its streaming business Tencent Music Entertainment Group and other undisclosed investors, first bought a 10% stake in Universal. That deal included the option to purchase an additional stake of up to 10% on the same valuation.
Tencent and Vivendi also signed a separate agreement in March, enabling Titanscent Music, which owns the record label Greater China operations, to acquire a minority stake in Universal.
The Chinese company also bought a small stake in Werner Music Group earlier this year. Corpo.
, Home to stars including Cardi B, Ed Sheeran and Lizo.
For Vivendi, Friday’s deal cemented the relationship with Tencent who hopes Universal will further develop its activities in Asia, with companies working together to expand opportunities for artists.
The stake sale also allows the French media organization to retain an 80% stake in Universal, which will drive the revived music industry.
Spotify Technology S.A. And Apple Pal Inc. Music ownership sales and sales have become more valuable in recent years due to the growing revenue of music streaming on services like Apple Music.
Vivendi, whose operations range from marketing television and videogame products to marketing, said he could use the proceeds to pay off debt, buy back shares and raise funds.
He also said he would now try to sell additional minority interests to Universal, which recently plans to list on the stock market in 2022.
Copyright Pirate 20 2020 Dow Jones & Co., Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
.
