A consortium around Chinese internet giant Tencent (HKG: 0700) will exercise an option to increase their holdings in Universal Music Group (UMG) to 20%, according to company statements.
In March, the Tencent-led group bought an initial 10% stake in UMG at a company valuation of USD 36.8 billion, the same as in the current purchase.
Tencent Music Entertainment (NYSE: TME), the subsidiary of Tencent which runs three popular music streaming apps with a total mobile user base of 646 million, has announced that it participated in the UMG deal.
“The transaction reinforces TME’s commitment to strengthen its strategic partnership with UMG. TME looks forward to an ongoing and deeper collaboration as both companies work together to bring unparalleled service and product offerings to artists and fans in China’s booming music entertainment market,” read the statement.
Read this: Tencent Music Entertainment Q3 revenue surpasses USD 1 billion
This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.