Vivendi Sells Additional 10 Percent Stake in Universal Music to Tencent-Led Consortium

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Drake

The deal values the stake at $3.7 billion.

Vivendi said Friday that a Tencent-led consortium had exercised its option to acquire an additional 10 percent stake of Universal Music Group.

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.