Universal Music valued around $39 billion ahead of stock market debut
The brand of Common Music Group (UMG) is seen at a constructing in Zurich, Switzerland July 20, 2021. REUTERS/Arnd Wiegmann/File Picture
PARIS/AMSTERDAM, Sept 20 (Reuters) – Common Music Group is valued at round 33.5 billion euros ($39.30 billion) forward of the famed document label’s spin-off from France’s Vivendi and inventory market debut in Amsterdam on Tuesday.
Vivendi on Monday set the reference worth for the itemizing at 18.5 euros per share, in line with a press release issued by Euronext.
Common Music Group’s (UMG) spin-off will likely be Europe’s largest itemizing this 12 months and can hand 60% of shares to Vivendi shareholders.
Common, the enterprise behind singers equivalent to Woman Gaga, Taylor Swift and The Weeknd, is betting {that a} increase in streaming that has fuelled current income and revenue progress nonetheless has an extended technique to run, in a music trade it dominates together with Warner and Sony Music, a part of Sony Group Corp .
Its flotation carries excessive stakes for Canal+ proprietor Vivendi, which hopes within the longer run to rid itself of a conglomerate low cost, which it believes has weighed on its shares. Nonetheless, its itemizing raises questions on Vivendi’s technique as soon as it elements methods with its money cow, during which it is going to retain solely a ten% stake.
A number of high-profile traders have additionally already snapped up chunky Common stakes, banking the group’s again catalog of superstars, together with the Beatles, and its push into social media app offers will maintain its efficiency and valuation.
U.S. billionaire William Ackman, who suffered a setback when his try to put money into Common through a particular function acquisition automobile (SPAC) hit a snag with regulators and traders, may have a ten% stake after the itemizing through his Pershing Sq. hedge fund.
In addition to Ackman, whose songwriting grandfather bought lyrics that are actually owned by the music group, China’s Tencent can even maintain 20%.
($1 = 0.8524 euros)
Further reporting by Toby Sterling; Writing by Sarah White; Enhancing by David Evans and Lisa Shumaker
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