Chinese tech giant Tencent is in talks with French media company Vivendi to buy 10% of Universal Music Group, whose artists include Ariana Grande, Lady Gaga, U2 and the Rolling Stones.
Vivendi said it has started preliminary negotiations that value Universal Music at about €30bn.
Tencent would have a one-year option to buy an additional 10% stake, Vivendi added.
The Chinese and French companies are also considering “areas of strategic commercial cooperation”.
Vivendi said the deal would help it seize growth opportunities and better promote existing Universal artists, as well as new talents in emerging markets.
Tencent is the world’s largest gaming company and one of the world’s biggest social media businesses. The stock is up +$0.59 (1.39%)*.
* At the time of this article