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Tencent in Talks for Stake in Record Label of Ariana Grande, Queen

Deal for 10% of Universal Music would tighten tech giant's dominance of music industry in China

From the invention of the phonograph in 1877 to the boom in streaming services today, the music industry has had to constantly adapt to emerging technology. In this video, we explore whether music can continue to reinvent itself to survive. Photo: Liliana Llamas/WSJ
By
Shan Li and
Anthony Shevlin

BEIJING—Tencent Holdings Ltd. is negotiating to buy 10% of Universal Music Group, the world’s largest music company, from Vivendi SA for about €3 billion ($3.36 billion)—a deal that would strengthen the Chinese internet giant’s growing clout in the global record industry.

The investment, if consummated, also gives Tencent an option to double its stake. A deal would give it a seat at one of the world's music giants. Los Angeles-based Universal has signed blockbuster artists like Ariana Grande, Drake and Billie Eilish. Its stable...