Tencent Music's Universal Music Deal Could Hurt Alibaba and NetEase
Tencent Holdings (OTC: TCEHY) recently led a consortium of companies, including Tencent Music Entertainment (NYSE: TME), in acquiring a 10% stake of Vivendi's (OTC: VIVHY) Universal Music Group for $3.4 billion.
Before the deal closes in the first half of 2020, Tencent Music is expected to enter a second deal to acquire a minority stake in UMG's Chinese business. Furthermore, the deal gives the consortium the option of buying an additional stake of up to 10% in UMG by Jan. 15, 2021.
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Source Fool.com
