French media conglomerate Vivendi announced on Tuesday that it signed an agreement to sell a stake of its wholly owned Universal Music Group, the world’s largest music company, to a consortium led by Chinese tech company Tencent Holdings.
The long-discussed arrangementprovides for the sale of 10% of UMG — based on a €30 billion ($33.6 billion) valuation — to Tencent, with additional participation by Tencent Music Entertainment and other “certain global financial investors,” the companies said in a joint disclosure.
Given UMG’s established valuation, the deal means Vivendi should pocket roughly $3.3 billion for the stake sale, following regulatory approvals and other closing conditions. The companies said the transaction should be wrapped up by the end of the first half of 2020.
Full Content: Billboard
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