Music streaming

Tencent/UMG deal could squeeze out rival music distributors

Tougher days are expected for the likes of NetEase Cloud Music and Baidu Music if Tencent moves forward with a 10% stake purchase in Universal Music Group.

Tencent’s attempt to acquire a minority stake in Universal Music Group UMG is a red flag for China's music streaming platforms as it may prevent them from entering into any licensing deal with the world’s largest record label.

French media giant Vivendi said on Tuesday that it is in talks to sell a 10% stake in UMG to the Chinese tech heavyweight in a deal that would value the music company at 30 billion $33.6 billion. If the transaction goes through, it would be the first case of a Chinese company owning a stake in one of the world’s three biggest music companies.

Tencent...

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