The world’s largest music label will be traded on the Euronext NV Exchange in Amsterdam, assuming the public offering is complete. French media group Vivendi says that it plans to close Universal Music Group in an IPO by the end of 2021. UMG is one of the “Big Three” record labels with Warner Music Group and Sony Music, based in Santa Monica, California, and headed by CEO Lucian Grange.
The company announced the decision in a statement on Saturday morning, stating that the IPO will be on the Euronext NV exchange in Amsterdam, and it estimates the value of the record label at $ 36.4 billion. The cast of UMG includes Taylor Swift, Lady Gaga, The Rolling Stones, Alicia Keys, Post Malone, Billy Ellisch, Billy Joel, Jay. Many others including Balwyn and Coldplay.
In its statement on Saturday, Vivendi said it would also distribute 60 percent of the company’s share capital to existing shareholders. Vivendi owns 80 percent of UMG, with the Tencent-led consortium of China holding the remaining 20 percent. The Tencent consortium owned 10 percent of the label but acquired an additional stake in December last year for $ 3.7 billion.
A special meeting will be held next month to vote on changes in corporate by-laws, which will allow the transaction to take effect. Once they are approved, a separate vote will be set to approve the UMG spinoff and distribution.
Record labels are in the midst of a surprising corporate resurgence, driven by streaming music services such as Spotify and Apple Music, as well as social apps such as TikTok and Instagram, which license the songs to be posted by their users. Warner Music Group, controlled by Access Industries, had its IPO last year at $ 1.9 billion at a valuation of $ 15 billion.