Vivendi turns to Tencent to gain Universal foothold in China

While at a preliminary stage, the discussions highlight Tencent's role as gatekeeper to China and the desire of Universal, whose revenues are surging as a result of online streaming, to expand beyond its traditional markets. — Reuters

PARIS/BEIJING: Vivendi is in talks to sell up to 20% of Universal Music Group (UMG) to Tencent, valuing its prized asset at around €30bil (RM140.77bil), in an attempt to break into China's growing but tightly-controlled music market.

While at a preliminary stage, the discussions highlight Tencent's role as gatekeeper to China and the desire of Universal, whose revenues are surging as a result of online streaming, to expand beyond its traditional markets.