China’s leading innovative online music entertainment platform Tencent Music Entertainment Group (TME) has led a consortium along with the firm’s wholly-owned subsidiary to acquire an additional 10% equity stake in Universal Music Group (UMG) from parent company Vivendi SE (VIV.PA) on Jan. 29.
TME consortium’s equity ownership in UMG is now at 20%, and TME will continue to have a 10% equity interest in the consortium. The transaction was based on the same enterprise value of €30 billion for 100% of UMG’s share capital as in the initial acquisition that closed in March 2020.
TME has been looking for new opportunities overseas in the past few years. The stronger bond with UMG will allow TME to further enhance its extensive engagement with the world music library and set a new benchmark for a long-term collaboration. This transaction highlights the significance of UMG’s vast content library and the promising future that TME’s massive user base, profound user insights, and exceptional promotional capabilities might bring to this cooperation.
Operating several of country’s highly popular and innovative music apps, TME saw a share price surge on the New York Stock Exchange market in the past two weeks following the firm’s 100% acquisition of Lazy Audio, a comprehensive audio platform.
UMG owns many internationally-recognized singers’ music rights, like The Beatles, Queen, Taylor Swift, and Billie Eilish. TME is looking forward to establishing an open and mutually beneficial strategic relationship with UMG.
TME aims to use technology to elevate the role of music in people’s lives by enabling users to create, enjoy, share and interact with music. Tencent Music’s platform comprises online music, online karaoke, and music-centric live streaming services, enabling music fans to discover, listen, sing, watch, perform and socialize around music.