(Yicai Global) Aug. 6 -- Chinese internet giant Tencent Holdings is in preliminary negotiations with French media conglomerate Vivendi to buy a 10 percent stake in Universal Music Group, the world's largest music label. 

A deal would give UMG a preliminary equity valuation of EUR30 billion (USD33.6 billion), Paris-based Vivendi said in a statement today. Tencent would have a one-year call option to take an additional 10 percent at the same price and on the same terms.

Headquartered in California, UMG is considered one of the world's 'big three' music companies, along with Sony Music and Warner Music Group. Its leading artists include Lady Gaga and Taylor Swift.

Vivendi and Shenzhen-based Tencent are also looking at areas of strategic commercial cooperation. Vivendi is keen to explore deeper collaboration that could help UMG capture growth opportunities offered by digitalization and new markets, it added.

Together with Tencent, Vivendi hopes to better promote UMG's artists, with whom it has created the greatest catalog of recordings and songs ever, as well as identify and promote new talent in new markets. Vivendi hopes that a partnership could create value for both Tencent and UMG.