Vivendi sells Universal Music stake to Tencent consortium
Universal Music Group: it's the world's biggest music label, home to Lady Gaga, Taylor Swift, Ariana Grande, and greats like The Beatles.
And, now to be shared with a consortium led by Tencent.
Universal's owner Vivendi disclosing on Tuesday (December 31) that it has finalized an agreement to sell a 10% stake to the Chinese firm and its co-investors.
The deal values Universal at $34 billion and the consortium has an option to buy another stake by early 2021.
Talks between the two groups were first revealed in August.
The agreement will allow both to expand in a recovering global market, with Tencent getting more access to U.S. artists and Universal tapping into Korea's K-Pop and other Asian stars.
The revenues are there.
2018 saw a fourth year of strong growth after a decade of decline, much of the upsurge driven by Spotify and other streaming services.
They made up nearly half of all revenues.
The deal will also be music to the ears of Vincent Bollore, the French billionaire who controls Vivendi, and who has been seeking to cash in on the revival.
