CHINESE LEAD SWOOP ON UNIVERSAL MUSIC

A CHINESE-led consortium has snapped up a 10pc stake in the music label behind Taylor Swift (pictured), Lady Gaga and the Beatles.

The purchase by entertainment giant Tencent and others values Vivendi’s Universal Music Group (UMG) at a £25.5bn.

UMG is the world’s biggest music label, ahead of Sony Music Entertainment and Warner Music.

The blockbuster deal gives Universal access to Asia’s popular K-pop artists while Tencent gets a host of the West’s most famous musicians. The Tencentled consortium also has an option to buy another 10pc of UMG by January 2021 at the same price.

Vivendi, controlled by French billionaire Vincent Bollore, is seeking to cash in on the music industry’s revival, driven by a growing subscription and music streaming services.

Global recorded music revenues rose 9.7pc in 2019 compared to the previous year.

Universal was Vivendi’s biggest source of growth in the third quarter, after its revenues jumped 16pc to about £1.5bn.