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Sources told Reuters that KKR. N, an American private equity firm, and TME. N, a Chinese music streaming company, are investigating a bid for less than half of the stake in Universal Music Group (UMG), the music division of Vivendi (VIV.PA), which could amount to 20 billion euros ($22.73 billion).
Vincent Bollore, a French billionaire with a 25% stake in Vivendi, is choosing a bank to handle the sale of part of UMG, two people familiar with the matter said.
They said they expected sellers to select banks in March and the sale process could start in the second quarter.
But informal discussions with potential buyers are already under way, and banks are trying to judge the attractiveness of the asset.
UMG is the world's largest record company and the host of Lady Gaga, Taylor Swift, Drake and Kendrick Lamar.
Vivendi and KKR did not comment and Tencent did not immediately comment.
Analysts have expressed different views on UMG valuation. Recently, the company has been described as "a unique asset with insufficient monetization and global content that is strategically significant to technology giants and cannot be replicated". He believes that the fair value of UMG is 44 billion euros.
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