Tencent is further strengthening its ties with music giant Universal Music Group as it continues to dominate the Chinese music streaming market.

A consortium led by Tencent and comprising Tencent Music Entertainment, the internet giants music spinoff, is set to buy an additional 10% equity stake in UMG from French media conglomerate Vivendi SA, TME said on Friday.

The round values UMG at 30 billion, or $36.8 billion, and will increase the consortiums stake in the music company to 20%. TME continues to hold a 10% equity interest in the consortium, of which other members are not disclosed.

The transaction reinforces TMEs commitment to strengthening its strategic partnership with UMG.TME looks forward to an ongoing and deeper collaboration with UMG as both companies work together to bring unparalleled service and product offerings to artists and fans inChinas booming music entertainment market, the company said.

The transaction is expected to close in the first half of 2021 and is subject to regulatory approvals, TME noted.

In August, TME and UMG said they were launching a joint label to discover, develop and promote Chinese artists domestically and to the world.

Tencent has been pally with all three music label giants, which have been licensing content to the Chinese firms music-focused apps. Both Warner Music and Sony Music Entertainment bought shares in TME when the latter went public in Hong Kong.

Warner Musics SEC filing earlier this year showed that it had sold a small stake to Tencent. And one should be reminded that Tencent also had a deal with Spotify from 2017 when the two swapped stakes.

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Tencent-led consortium will lift stake in Universal Music to 20% - TechCrunch