Tencent continues to strengthen its relationship with music giant Universal Music Group as it continues to dominate the Chinese music streaming market.
A Tencent-led consortium consisting of Tencent Music Entertainment, According to TME, the internet giant’s music spin-off will buy an additional 10% stake in UMG from the French media conglomerate Vivendi SA on Friday.
The round values UMG with 30 billion euros or 36.8 billion US dollars and increases the consortium's stake in the music company to 20%. TME continues to hold a 10% stake in the consortium, which other members will not be disclosed.
“The transaction strengthens TME's commitmento Strengthening the strategic partnership with UMG. TME looks forward to an ongoing and closer collaboration with UMG as both companies work together to offer artists and fans an unparalleled range of services and products China booming music entertainment market, ”said the company.
The transaction is expected to close in the first half of 2021 and is subject to regulatory approvals [TME] written down.
In August, TME and UMG announced that they were creating a joint label to discover, develop and promote Chinese artists at home and abroad.
Tencent has partnered with all three music label giants who have licensed content for the Chinese company's music-oriented apps. Both Warner Music and Sony Music Entertainment bought shares in TME when it went public in Hong Kong.
Warner Music's SEC filing earlier this year showed that a small stake in Tencent had been sold. And it should be remembered that Tencent also had a contract with Spotify from 2017 when the two shares were swapped.