French Media Giant, Vivendi Seals $3.3bn Deal
One of France’s media conglomerates, Vivendi, has concluded a $ 3.3 billion sale of Universal Music Group’s stake to a Chinese consortium.
Vivendi made the announcement about the deal on Tuesday, March 31, saying it was selling off a 10% stake in Universal Music Group to a consortium.
“Vivendi is very happy with the arrival of the Tencent-led consortium,” it says.
Vivendi added that “It will enable UMG to further develop in the Asian market.”
It stated that “Now that this very significant strategic operation has been completed, Vivendi will pursue the possible sale of additional minority interests in UMG, assisted by several banks which it has mandated.”
The consortium is being led by Chinese technology giant, Tencent.
Per the agreement, Tencent and its partners have the right to increase their stake.
The increment of their stake could be as much as 20% at the same valuation until January 15, 2021.
The Universal Music Group has a number of labels.
The labels have been responsible for artists including Taylor Swift, The Beatles, Billie Eilish and Nirvana.
It would be recalled that the deal was first announced in December 2019.
With the deal sealed, Universal Music is now valued at €30B ($33B).
Meanwhile, Vivendi and Tencent are equally planning to enter into a second agreement that gives Tencent an option to acquire a minority equity stake in UMG’s Greater China business.
Vivendi says Universal Music is ready for an Initial Public Offering (IPO) by early 2023.