China's Tencent eyes Universal Music stake
China’s Tencent Music Entertainment is considering making a bid for the 50% stake in Universal Music Group (UMG) that owner Vivendi is slated to put on the block sometime this year, according to a report from Reuters.
That would be a bold move from TME which only late last year listed on the New York Stock Exchange. The company operates a number of music services, including QQ Music, Kugou, and Kuwo, and can boast TME 800m monthly users.
UMG, which has been valued at between €30m and €50m in recent months, is performing well on the back of growing appetite for music streaming services from the likes of Spotify and Apple Music. The company reported €2.6bn in revenue from streaming in 2018, up more than 37% on the previous year.
UMG artists were responsible for eight of the top-10 streamed albums in the US last year, including Post Malone’s Beerbongs & Bentleys.
Interestingly, Spotify has a 9% stake in TME, while the latter holds 7.5% of Spotify.