Tencent is additional strengthening its ties with music big Common Music Group because it continues to dominate the Chinese language music streaming market.
A consortium led by Tencent and comprising Tencent Music Entertainment, the web big’s music spinoff, is about to purchase an extra 10% fairness stake in UMG from French media conglomerate Vivendi SA, TME said on Friday.
The spherical values UMG at 30 billion euros, or $36.8 billion, and can improve the consortium’s stake within the music firm to twenty%. TME continues to carry a ten% fairness curiosity within the consortium, of which different members aren’t disclosed.
“The transaction reinforces TME’s dedication to strengthening its strategic partnership with UMG. TME seems ahead to an ongoing and deeper collaboration with UMG as each firms work collectively to convey 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 said they have been launching a joint label to find, develop and promote Chinese language artists domestically and to the world.
Tencent has been pally with all three music label giants, which have been licensing content material to the Chinese language agency’s music-focused apps. Each Warner Music and Sony Music Leisure 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 sold a small stake to Tencent. And one must be reminded that Tencent additionally had a take care of Spotify from 2017 when the 2 swapped stakes.