Vivendi talks with Tencent to sell an additional 10% of Universal Music Group. It is the French company that officially announces the negotiation and the stock immediately soars on the Paris Stock Exchange. At around 9:40 the shares of the French group headed by Vincent Bolloré rose by 6,5% to 25,55 euros when the Car index was up 0,4%.
Undoubtedly the news that the Chinese internet giant Tencent could invest up to 6 billion euros in two phases to reach 20% in Universal Music Group, attracts the attention of investors. At first, Tencent would make a strategic investment of 10% stake in UMG, based on a total enterprise value of 30 billion euros, according to a Vivendi statement. The Chinese group would also have "a purchase option to acquire a further 10% at the same price and under the same conditions".
Vivendi also specifies that with Tencent it is studying "in parallel, various sectors of commercial collaboration of a strategic nature". And that Vivendi "is very interested in the possibility of an enhanced collaboration that will allow Umg to benefit from the growth opportunities offered by digitization and the opening of new markets".
With Tencent, the French group hopes to strengthen the promotion of Umg artists and also hopes to seek out and promote new talents in new markets, the press release specifies. In any case, Vivendi "continues the procedure for the sale of a further minority stake to other potential partners", concludes the note.
Umg is the world number one in the music market, ahead of Sony Music Entertainment and Warner Music and in its stable it counts artists such as Lady Gaga, Ariana Grande, Taylor Swift, Billie Eilish and Drake. On 25 July, on the occasion of the announcement of the half-year results, Vivendi confirmed that it had given a mandate to the investment banks to open the capital of Umg, which is the most successful subsidiary of the French group. Indeed, in the first half Umg achieved record results, with an 18% increase in sales at constant rates and perimeter (+24% on published data) to 3,2 billion and an adjusted operating profit of 481 million (+43,6% ). Since January 13, the Vivendi share has risen by almost 31% and is capitalized over XNUMX billion euros.
