#Tencent doubles stake in Universal Music Group

Chinese internet giant Tencent is doubling its stake to 20 percent in Universal Music Group, the home of entertainers like Ariana Grande, Lady Gaga, Billie Eilish, Drake and the Beatles.

Tencent said Friday that it was leading a consortium that agreed to buy an additional 10 percent stake in UMG from parent company Vivendi, in a deal that values the world’s largest music business at about $36.8 billion.

The purchase comes nearly a year after the Tencent-led group, which includes its streaming business Tencent Music Entertainment Group and other undisclosed investors, first bought a 10 percent stake in the record label. That deal included an option to scoop up an additional stake of up to 10 percent at the same valuation.

In March, Tencent and Vivendi also signed a separate agreement allowing Tencent Music to acquire a minority stake in the Universal subsidiary that owns the record label’s Greater China operations.

In June, Tencent also bought a small stake in Warner Music Group, home to artists like Cardi B, Ed Sheeran and Lizzo.

Vivendi said Friday that Tencent’s 20 percent stake in Universal would help the business “further develop its activities in Asia” and that they would work together to broaden opportunities for artists.

Following the latest Tencent deal, which is expected to close in the first half of 2021, Vivendi will hold an 80 percent stake in Universal. However, the French media conglomerate said it would look to sell additional minority interests in UMG, which it plans to list on the stock market in 2022 at the latest.