Tencent is additional strengthening its ties with music large Universal Music Group because it continues to dominate the Chinese music streaming market.
A consortium led by Tencent and comprising Tencent Music Entertainment, the web large’s music spinoff, is about to purchase a further 10% fairness stake in UMG from French media conglomerate Vivendi SA, TME mentioned on Friday.
The spherical values UMG at 30 billion euros, or $36.eight billion, and can improve the consortium’s stake within the music firm to 20%. TME continues to carry a 10% fairness curiosity within the consortium, of which different members usually are not disclosed.
“The transaction reinforces TME’s dedication to strengthening its strategic partnership with UMG. TME appears ahead to an ongoing and deeper collaboration with UMG as each firms work collectively to deliver unparalleled service and product choices to artists and followers in China’s booming music leisure market,” the corporate mentioned.
The transaction is predicted to shut within the first half of 2021 and is topic to regulatory approvals, TME famous.
In August, TME and UMG mentioned they had been launching a joint label to find, develop and promote Chinese artists domestically and to the world.
Tencent and Universal Music to take Chinese artists world beneath joint label
Tencent has been pally with all three music label giants, which have been licensing content material to the Chinese agency’s music-focused apps. Both Warner Music and Sony Music Entertainment purchased shares in TME when the latter went public in Hong Kong.
Warner Music’s SEC submitting earlier this 12 months confirmed that it had offered a small stake to Tencent. And one ought to be reminded that Tencent additionally had a take care of Spotify from 2017 when the 2 swapped stakes.