- Share this article on Facebook
- Share this article on Twitter
- Share this article on Email
- Show additional share options
- Share this article on Print
- Share this article on Comment
- Share this article on Whatsapp
- Share this article on Linkedin
- Share this article on Reddit
- Share this article on Pinit
- Share this article on Tumblr
The French entertainment and telecom conglomerate confirmed the deal was based on an enterprise value for UMG of €30 billion, or $36.76 billion at current exchange rates, which values the 10 percent stake in the music major at $3.7 billion.
The consortium buying the stake is led by Tencent and includes Tencent Music Entertainment and “other financial co-investors,” the companies said.
UMG is part of the “Big Three” record labels that dominate the music industry along with Sony Music and Warner Music Group. The company’s roster of artists includes Drake, Billie Eilish, Halsey and Taylor Swift.
Vivendi said it plans to “sell additional minority interests in UMG” with a listing planned for the unit “at the latest in 2022.” The company said it may use the cash generated by these transactions to reduce its debt and to finance share buybacks and acquisitions.
Sign up for THR news straight to your inbox every day