According to reports in foreign media, China's Tencent has entered initial negotiations with French media group Vivendi, aiming to acquire a 10% stake in Universal Music Group.
It is said that if an agreement was reached, UMG's preliminary valuation would be EUR30 billion, which is about USD33.6 billion. Meanwhile, the deal would give Tencent a one-year option to purchase another 10% stake on the same terms.
Vivendi said that the two companies will also explore other areas of strategic commercial cooperation. By enhancing cooperation, Vivendi hopes to help grow UMG through new digital initiatives and territories.
In addition, Vivendi is continuing to seek other potential buyers who are interested in minority shareholding of UMG.