Vivendi has reportedly been in discussions with Tencent for several months to develop a deal for the Chinese conglomerate to acquire a stake of Universal Music Group. But even as the discussions drag on, there’s still plenty of uncertainty around whether an agreement will come together. Tencent began reaching out to potential minority investors last month to secure enough funds for the deal.
Now, sources told Reuters that most of Tencent’s initial targets for partners in acquiring a UMG stake have stepped away from negotiations. The publication reported that Tencent is only still in talks with GIC, the state investor of Singapore, after two U.S. private equity funds, KKR and Hellman & Friedman, left the talks. As a result, GIC has allegedly needed to tap a series of sovereign wealth funds to save the deal. Sources said the parties anticipate a final agreement by the end of the year.