As the part of the strategic investment, the French media company, Vivendi has agreed to sell the 10 percent stake of Universal Music Group to Chinese tech company Tencent Holdings Limited.
Vivendi, who works with the artists like Taylor Swift, Lana Del Rey, The Beatles, and many others, in its statement said, “The company has agreed to sell its 10 percent shares of Universal Music Group (UMG) which valued at 30 billion euros (USD 33.6 billion), to the Tencent Holdings Limited on a fully diluted bases.”
“As the part of the deal, Tencent will also have a one-year call option to acquire an additional 10 percent stake of UMG at the same price and terms,” the statement said.
Adding more on this, the company said “Together with Tencent, Vivendi hopes to improve the promotion of UMG’s artists, with whom UMG has created the greatest catalogue of recordings and songs ever, as well as identify and promote new talents in new markets.”
“Vivendi hopes that this new strategic partnership could create value for both Tencent and UMG,” the company said.
“We are continuing our process to sell further minority stakes of UMG to other partners,” Vivendi added.