Tencent Holdings Ltd. is doubling its stake in the music giant behind Ariana Grande and Billie Eilish.
The Chinese internet company said Friday it was leading a consortium that had agreed to buy an additional 10% stake in Universal Music Group from Vivendi SE, in a deal that values the world’s largest music business at 30 billion euros, equivalent to $36.8 billion.
The deal bolsters Tencent’s growing presence in the record industry and its exposure to some of the biggest names in music. Universal’s stable also includes classic acts such as Queen and the Beatles, and it recently boughtBob Dylan’s entire publishing catalog.
The purchase comes nearly a year after the Tencent-led consortium, which includes its streaming business Tencent Music Entertainment Group and other undisclosed investors, first bought a 10% stake in Universal. That deal included an option to buy an additional stake of up to 10% at the same valuation.
Tencent and Vivendi also signed a separate agreement in March enabling Tencent Music to acquire a minority stake in the Universal subsidiary that owns the record label’s Greater China operations.