The buzz surrounding VIVENDI SA’s desire to find a buyer for a stake in UNIVERSAL MUSIC GROUP continues to get louder, with BLOOMBERG reporting, “some private equity investors balked at the high price and slow pace of the deal.”
The latest rumor has VIVENDI in talks with companies including TENCENT HOLDINGS LTD. about a minority investment. BLOOMBERG notes that, “could help UNIVERSAL MUSIC expand internationally including in CHINA,” adding, “but a sale to the Chinese could also raise the ire of officials in the U.S., the biggest music market, amid trade tensions.”
Several reports have the minimum value of 25 billion to 30 billion euros ($28 billion to $33 billion) that VIVENDI is seeking for the business. Analysts’ estimates are close, with $20 billion to $50 billion floated. “While the company only wants to sell a minority stake so far, some potential advisers have floated the idea of a majority stake to gauge interest and test valuations,” writes BLOOMBERG.