Tencent Looking At A 10% Purchase
THE WALL STREET JOURNAL reports, "Chinese internet giant TENCENT HOLDINGS LTD. is negotiating to buy 10% of UNIVERSAL MUSIC GROUP, one of the world’s largest music labels, from VIVENDI SA." Several reports have a potential deal valued at €3 billion ($3.36 billion).
VIVENDI noted that TENCENT would have a one-year option to acquire an additional 10% stake in the music business at the same terms.
“VIVENDI is eager to explore enhanced cooperation which could help UMG capture growth opportunities offered by the digitization and the opening of new markets,” the company said. It added that it hoped the deal would improve the promotion of UNIVERSAL’s artists. THE JOURNAL adds, "The transaction is subject to due diligence and VIVENDI plans to continue seeking other potential buyers for an additional minority stake in UNIVERSAL."
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