Vivendi considers listing Universal Music Group

Vivendi considers listing Universal Music Group

Vivendi shares bought a Three p.c bump on Thursday after the chief govt of the Paris conglomerate mentioned it’s weighing a public listing of its Universal Music Group.

“We have now began work that can permit us to current the advantages of a possible listing of UMG to the supervisory board,” Chief Government Arnaud de Puyfontaine mentioned at Vivendi’s shareholder assembly.

De Puyfontaine didn’t reveal how quickly he would possibly pull the set off on an IPO of the world’s No. 1 music label, which accounts for 46 p.c of the guardian firm’s income and 72 p.c of working earnings.

However an IPO has lengthy been on the thoughts of Vivendi chairman Vincent Bolloré, who introduced at Thursday’s assembly that his son, Yannick, would succeed him.

For instance, when requested about untethering UMG final yr, Bolloré père referred to as the timing exceedingly tough.

“It’s like cheese puffs,” he mentioned. “You must take them out on the proper second.”

Many consider UMG’s “second” started final August, when Goldman Sachs analyst Lisa Yang put a $23.Three billion worth on Vivendi’s music section.

That’s 72 p.c of the worth the market locations on your complete conglomerate, which additionally homes the movie and TV operations of Canal+Group, advert firm Havas and video-game writer Gameloft.

Pushed by streaming income for such artists as Katy Perry, Drake and The Beatles, UMG posted income good points of seven.7 p.c in 2017.

UMG controls a 29.7 p.c stake of the music enterprise, based on figures launched Thursday by MIDiA Analysis.

UMG had one other “second” in January when JPMorgan Cazenove issued a report that asserted if Spotify was price $20 billion, then UMG was price greater than $40 billion.

Spotify, which started buying and selling publicly on April 3, has since seen its market cap climb to $27.Three billion.

By comparability, when Sir Lucian Grainge was appointed UMG’s CEO in 2010, Vivendi’s music enterprise was valued at $6 billion.

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