Chinese giant Tencent is in talks to buy a $3.4 billion stake in Ariana Grande's music label Universal Music Group

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Ariana Grande is one of the artists signed to Universal Music Group

• Chinese internet giant Tencent is in talks to buy a 10% stake of Universal Music Group from Vivendi.
• Vivendi announced the talks, saying the deal would be worth $3.36 billion, and Tencent would have a one-year option to acquire an additional 10% stake.
• Ariana Grande, Lady Gaga, and Billie Eilish are some of the artists signed to one of the world's biggest music labels.
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Tencent, the Chinese internet giant, is negotiating a 10% stake in Universal Music Group.

That's according to Universal Music's owner Vivendi, which said in a statement that the stake will be worth roughly $3.36 billion, and that Tencent could the option to purchase an additional 10% of the music label.

UMG is one of the largest music labels in the world, with the likes of Ariana Grande, Drake, Lady Gaga, Rihanna, Taylor Swift, and Billie Eilish signed to the label.

"Vivendi is eager to explore enhanced cooperation which could help UMG capture growth opportunities offered by the digitization and the opening of new markets," the company said in the statement.

Vivendi, last July said that it was looking to sell up to half of Universal Music Group, but ruled out an IPO, according to the Wall Street Journal. Last month, the French company said that it's first half net profit more than tripled, boosted by its music division, the Journal said.

The transaction is still subject to due diligence, Vivendi said, and the company is also planning to sell an additional minority stake in UMG to other potential partners.

Vivendi's stock jumped 6.8% in Paris trading.

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Vivendi stock soared in Paris trading.