Chinese Tech Giant Tencent Acquires 20% in Universal Music Group

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”.

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.