Universal Music Group (UMG), a subsidiary of Vivendi, began the process of listing on the stock exchange based on a 33 billion euro valuation ($38 billion). Its listing in Amsterdam is scheduled for tomorrow, September 21 (local time).
As part of a separate statement, Vivendi stated that UMG shares’ technical reference price will be announced by Euronext Amsterdam on September 20. In connection with the IPO, Vivendi intends to distribute 60% of UMG’s share capital to its existing shareholders.
With the listing of Universal Music Group (UMG) on Tuesday, September 21, the Vivendi group is parting with its most profitable subsidiary and the first major in the music industry ahead of Sony and Warner.
In the first six months of this year, Vivendi’s recorded music division alone accounted for almost half of the company’s annual revenue.
The company dominates the world market for recorded music with more than 30% of the market share and controls labels like EMI, Capitol, Def Jam, Polydor, Blue Note, Decca, and Deutsche Grammophon.
Bob Dylan’s entire catalog, more than 600 titles, will be part of the company’s catalog in December 2020, along with stars who regularly occupy the top spots on global sales and streaming charts.
Along with blue chips such as The Beatles, The Rolling Stones and Andrea Bocelli, it has also signed artists such as Drake, who dominates the Spotify charts, and the top three female artists on streaming services in 2020: Billie Eilish, Taylor Swift, and Ariana Grande.
The major produced eight of the top 10 best-selling albums in the world in the first half of 2021, including Justin Bieber and Olivia Rodrigo.
The company benefits from the craze for subscription and streaming: its revenues from online music listening have increased 24.7% in the first half of 2021 despite the decline in physical sales due to the Covid-19 crisis and its share of health restrictions.
The major label alone accounts for 92.6% of Vivendi’s net profit – 452 million out of 488 million in the first half of the year.
Additionally, Universal is responsible for 46% of the group’s 3.8 billion euros ($4.45 billion) in revenue in the first half of 2021.