Tencent May Buy a Big Stake in Universal Music Group
Chinese tech giant Tencent (OTC: TCEHY) is in talks to buy a 10% stake in Universal Music Group (UMG) from French media conglomerate Vivendi (OTC: VIVHY). The proposed deal, which values UMG at 30 billion euros ($33.6 billion), would also grant Tencent the right to purchase an additional 10% of UMG within the first year.
UMG, Sony (NYSE: SNE) Entertainment, and Access Industries' Warner Music are the three largest record labels in the world. Tencent holds licensing deals with all three companies, and it spun off its streaming music unit, Tencent Music (NYSE: TME), in an IPO last December.
Sony and Warner Music already own stakes in Tencent Music, so Tencent's investment in UMG would expand its web of cross-investments to the last of the "big three" labels.
Quelle Fool.com
