Tencent is set to take a 10 per cent stake in Universal Music, which represents artists from The Beatles to Taylor Swift, marking the Chinese technology group’s latest move to broaden its reach in the global music industry.
French media conglomerate Vivendi, Universal’s owner, yesterday revealed it was in talks to sell the stake to Tencent in a deal that would value the world’s largest music group at €30bn. The Chinese company would have an option to double its stake within a year on the same terms.
The negotiations are the latest sign of a sustained recovery in the music sector, which has rebounded from a 15-year slump driven by online piracy and the collapse of the CD market. They follow April’s direct listing of Spotify, in which Tencent holds a substantial minority stake.