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UPDATE 1-Vivendi sells minority stake in Universal to Tencent consortium

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PARIS, Dec 31 (Reuters) - French media conglomerate Vivendi agreed to sell 10% of its Universal Music Group arm - home to artists such as Taylor Swift and Lady Gaga - to a consortium led by Tencent, in a deal valuing the whole of UMG at 30 billion euros ($34 billion).

Vivendi added that the Tencent-led consortium had the option to buy on the same price basis up to 10% more of UMG's share capital by January 15, 2021. The transaction gives a 30 billion euro price tag for UMG on an enterprise value basis.

Tencent did not immediately respond to request for comment. Vivendi did not disclose the details of the consortium beyond saying they were "global financial investors."

This initial deal would also soon be followed by a second one allowing Tencent Music Entertainment to buy a minority stake in UMG's subsidiary that houses its operations in Greater China, added Vivendi.

Vivendi, controlled by French billionaire Vincent Bollore, is seeking to cash in on the music industry's revival, driven by a growing thirst for subscription and ad-based music streaming services.

Universal, the music label featuring the likes of Lady Gaga, Ariana Grande and The Beatles, was the main sales growth driver for Vivendi in the third quarter, with its revenues jumping by close to 16% to 1.8 billion euros.

($1 = 0.8925 euros) (Reporting by Sudip Kar-Gupta; editing by Jason Neely and Louise Heavens)