Chinese multinational conglomerate Tencent Holdings Limited is in talks with Vivendi to acquire a 10% stake in Universal Music Group (UMG).
The proposed deal would value UMG at €30 billion (£27.6m) and includes a one-year option for Tencent to buy an additional 10% at the same price and terms.
Vivendi and Tencent are also "considering areas of strategic commercial cooperation" which "could help UMG capture growth opportunities offered by the digitalisation and the opening of new markets".
"Together with Tencent, Vivendi hopes to improve the promotion of UMG’s artists, with whom UMG has created the greatest catalogue of recordings and songs ever, as well as identify and promote new talents in new markets," said a press release. "Vivendi hopes that this new strategic partnership could create value for both Tencent and UMG."
The deal is subject to due diligence on UMG and finalisation of legal documentation. In addition to these discussions, Vivendi also plans to continue the process for the sale of an additional minority stake in UMG to other potential partners.
The plan to sell up to a 50% stake in the world's largest music firm was announced back in July 2018, with valuations ranging from $30-50 billion (£24-40bn).