A Tencent-led consortium has completed its acquisition of an additional 10% in Universal Music Group, both Tencent and UMG parent Vivendi announced Jan. 29. The acquisition takes the Tencent consortium’s holding in UMG from 10% to 20%, and reduces UMG parent Vivendi’s ownership stake in the music firm to 80%. As previously announced, the Tencent consortium has acquired the shares in UMG for €3 billion based on a €30 billion enterprise valuation of the music company.
Vivendi and Tencent additionally said in a joint press release today: “Vivendi has enjoyed the presence of Tencent and its co-investors at UMG’s share capital since March 2020 and is very happy that the Consortium decided to take a larger participation. This will notably enable UMG to further develop its activities in Asia”.
— Variety (@Variety) January 23, 2020
Within its announcement of the Tencent news this morning, Vivendi also suggested that that the proposed ‘spin-out’ IPO of Universal Music Group could happen next year. “Following the success of this significant strategic transaction, a UMG listing is planned in early 2022 at the latest,” said Vivendi.