Beijing (PingWest)- Tencent is planning to increase its stake in Vivendi’s Universal Music Group by a further 10% before the option expires in January, Bloomberg reported citing people familiar with the matter said.
After months of talks, Tencent had finished the purchase of an 10% stake of Universal Music Group in December last year.
Under the term of the agreement, Tencent also had the option to buy up to 10 percent more in the company by January 2021 on the same price basis.
Tencent is likely to exercise the option before the year-end, a source said closed to the matter said.
Universal is the largest music group in the world, with artists such as Taylor Swift, Queen, Rihanna, Lady Gaga, Ariana Grande. Upon completion of the deal, Universal artists has been promoted on Tencent’s platform. In addition to Universal Music, Tencent also holds stakes in the world’s most popular music streaming service such as Sweden’s Spotify, India’s Gaana, Tencent Music Entertainment Group.
By increasing its stake, Tencent is seeking to increase its asset portfolio in music. Most recently, the Chinese social network and gaming giant has made various key move including the merger of video livestreaming platform Huya and Douyu International. It has also proposed to take private Chinese gaming firm Leyou Technologies Holdings.
Tencent’s Universal Music Deal has been considered by many analysts as a key move to fight against rival NetEase, which in August sign a deal to license song from Universal Music.