Dhe French Vivendi group sells 10 percent of its subsidiary Universal Music Group (UMG) Tencent, The agreement was signed on Tuesday, Vivendi said. In addition to the Chinese Tencent Group, other investors who are not specified are involved in the purchase. According to Vivendi, UMG is valued at 30 billion euros. Subject to the approval of the antitrust authorities, the transaction is expected to be completed by the end of the first half of the year.
The buyer consortium led by Tencent had until January 15, 2021 an option to purchase another 10 percent at the same price, it said. In addition, they are in negotiations about the sale of another minority stake. Talks between Vivendi and Tencent had started in early August. Vivendi’s major shareholder Vincent Bolloré had previously announced that Vivendi could sell up to 50 percent of UMG.
Prominent artists, high sales
The Universal Music Group is ahead of the other two so-called major labels, Sony Music Entertainment and Warner Music, the largest music group in the world and has various prominent musicians under contract, including Taylor Swift, Billie Eilish and Bob Dylan. In 2018, sales of over six billion euros were posted.