8/6/2019, 11:33 AM (Source: TeleTrader)
more TeleTrader news

Tencent in talks with Vivendi to acquire 10% of UMG for €3B

Vivendi SA is negotiating the sale of 10% stake in its Universal Music Group (UMG) with Chinese tech giant Tencent, French mass media conglomerate said on Tuesday. The company said that the preliminary equity assessment values the world's largest music corporation at €30 billion on a fully-diluted basis.

According to the statement, Tencent would also have a one-year call option to acquire an additional 10% package at the same price and terms. Vivendi also plans to continue the process for the sale of an additional minority stake in UMG to other potential partners.

Vivendi and Tencent are also discussing other areas of strategic cooperation. "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 said in the statement.

The French company's shares surged 6.76% at 11:47 am CET.

Baha Breaking the News (BBN) / MA