Universal Music Group

Tencent Completes Multi-Billion Dollar Deal For 10% Of UMG

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CHINA (CelebrityAccess) – Vivendi has completed the sale of 10% of the share capital of Universal Music Group to a China-based Tencent-led consortium.

The sale was finalized exactly three months after the signing of the agreement took place on December 31, 2019, and gives Universal Music Group an implied Enterprise Value of €30bn, or approximately USD $33.7bn.

The consortium is led by Tencent Holdings and includes Tencent Music Entertainment and other unnamed financial co-investors, which can acquire a further 10% in UMG at the same price by January 15, 2021.

Additionally, Vivendi has confirmed that Tencent Music is acquiring a minority stake in UMG’s Greater China operation for an undisclosed price.

In a statement, Vivendi said: “Vivendi is very happy with the arrival of the Tencent-led consortium. It will enable UMG to further develop in the Asian market. Now that this very significant strategic operation has been completed, Vivendi will pursue the possible sale of additional minority interests in UMG, assisted by several banks which it has mandated.”

Vivendi added that it will use the proceeds from these different transactions for share buyback operations and acquisitions, with an initial public offering being planned for early 2023 at the latest.

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