China's Tencent in talks to buy 10% of Universal Music Group
Posted August 06, 2019 7:00 am
PARIS - Chinese tech giant Tencent is in talks with French media company Vivendi to buy 10% of Universal Music Group, whose artists include Ariana Grande, Lady Gaga, U2 and the Rolling Stones.
Vivendi said Tuesday it has started preliminary negotiations that value Universal Music at about 30 billion euros ($33.6 billion).
Tencent would have a one-year option to buy an additional 10% stake, the statement said.
The Chinese and French companies are also considering "areas of strategic commercial cooperation."
Vivendi said that the deal would help it seize new growth opportunities and better promote Universal artists and new talents in new markets.
Tencent is the world's largest gaming company and one of the world's biggest social media businesses.
FILE - In this file photo dated Friday, Aug. 31, 2018, actress and singer Lady Gaga poses for photographers upon arrival at the premiere of the film 'A Star Is Born' at the 75th edition of the Venice Film Festival in Venice, Italy. Chinese tech giant Tencent is in talks with French media company Vivendi to buy 10% of Universal Music Group, whose artists include Lady Gaga, according to an announcement from Vivendi Tuesday Aug. 6, 2019. (AP Photo/Kirsty Wigglesworth, FILE)
The Associated Press
FILE - In this file photo dated Friday, Aug. 31, 2018, Ariana Grande performs during the funeral service for Aretha Franklin at Greater Grace Temple in Detroit, USA. Chinese tech giant Tencent is in talks with French media company Vivendi to buy 10% of Universal Music Group, whose artists include Ariana Grande, according to an announcement from Vivendi Tuesday Aug. 6, 2019. (AP Photo/Paul Sancya, FILE)
The Associated Press
Mick Jagger, from left, Ronnie Wood, Charlie Watts and Keith Richards of The Rolling Stones perform at MetLife Stadium on Monday, Aug. 5, 2019, in East Rutherford, N.J. (Photo by Greg Allen/Invision/AP)
The Associated Press
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