Vivendi Is Considering Selling 10% of Universal Music Group Before IPO

Vivendi, owner of the world’s largest music company, Universal Music Group, told investors on Tuesday that it is considering selling an additional 10% stake in the company to an unnamed U.S. investor. Vivendi, which has already sold 20% of UMG to Chinese giant Tencent, is expected to sell off 60% of UMG in an IPO by the end of September.

It had been expected to retain its full 20%, but apparently is considering whether the market is hot enough to cash in now.

“The group is analyzing the opportunity of selling 10 percent of UMG shares to an American investor or initiating a public offering (IPO) of at least 5 percent and up to 10 percent of UMG shares,” Vivendi said Tuesday in an update to investors. “Furthermore, Vivendi will retain 10 percent of the UMG share capital for a minimum period of two years in order to remain associated with the development of its subsidiary” while also “benefiting from the protection of EU legislation applicable to parent companies and subsidiaries from different member states.” Vivendi also told investors that there will be no “poison pill” to protect against a hostile takeover after the IPO.

UMG was valued at a whopping $53 billion — up from $36 billion last year — last month in Goldman Sachs’ annual “Music in the Air” study, is widely recognized in the music industry as an optimistic but authoritative survey of the business, demonstrating the perceived strength of the recorded-music and publishing businesses, which are primary among UMG’s many properties, despite the pandemic that has flattened other sectors of the industry, particularly live entertainment.

 

Tobi❤

Tobi is a reserved individual, loves making friends and a top-notch web developer. Currently, he's working as a freelancer for cmatrends.com

Leave a Comment on CmaTrends

Next Post

Issa Rae to Lead 'Project Greenlight' Docuseries for HBO Max

Tue May 18 , 2021
Issa Rae, HBO Max and Miramax are reviving the critically acclaimed docuseries “Project Greenlight,” which originally spotlighted first-time filmmakers on HBO. The new “Project Greenlight” will focus on talented female filmmakers who are given the chance to direct a feature film. Rae will appear in every episode as an executive […]