SHENZHEN, China, (CelebrityAccess) — A consortium of investors led by Chinese music streaming service Tencent Music, announced it has acquired an addition 10% equity stake in Universal Music Group from its corporate parent, Vivendi.
The deal, which was completed by exercising call options first announced in December was based on the same enterprise value of EUR30 billion for 100% of UMG’s share capital as in the initial acquisition that closed in March 2020.
At the closing of the deal, the consortium’s equity stake in UMG represented 20% of the label giant and TME owns a 10% equity stake in the consortium.
According to Tencent Music, the transaction is intended to “further enhance its extensive engagement with UMG” ostensibly easing the music streamer’s catalog licensing.
UMG’s parent company, Vivendi, revealed that it is now planning to launch its long anticipated initial public offering of the label group by “2022 at the latest.”