The biggest music industry story of the year is edging closer to a conclusion.
According to an investor update just issued by Universal Music Group parent Vivendi, due diligence on Tencent Holdings’ bid to acquire 10%-20% of UMG is due to be finalized in the coming weeks.
And that’s not all: In a further statement today, Vivendi said: “[There is a] continuing process for the potential sale of an additional minority stake in UMG to other partners. Some have already expressed an interest in investing at a similar price level.”
That price level was set by Tencent in August, when it announced that it had made a bid for 10% to 20% of Universal, in a move that valued UMG at €30bn ($33bn).
According to Vivendi’s update today (October 17), Tencent’s bid comprises a “strategic investment of 10% of the share capital, with [an] option to acquire an additional 10%”.
Vivendi said it may use proceeds from the deal “for a significant share buyback program and bolt-on acquisitions”.
Universal Music Group revenues hit €5.06bn ($5.71bn) in the first nine months of 2019, Vivendi confirmed today, up 22.7%, or 17.5% on an organic basis.Music Business Worldwide