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Vivendi plans the IPO of Universal

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Miguel A. Rodriguez
Miguel A. Rodriguez
18 February 2021
Universal Music Group to make its public debut by 2023

The French media group, Vivendi, took the markets by surprise after revealed its plans to make Universal Music Group, its most important asset, a publicly traded one.

According to Vivendi’s statement, Universal will be a public company by early 2023 at the latest. In the past year, there was nothing but a record profit for the division. The music label and the home label of artists such as Lady Gaga, Drake, and Taylor Swift, performance before EBITA (earnings before interest, tax and amortization) surged 22% to $1.21 billion.

Vivendi plans to distribute 60% of Universal’s capital to its current shareholders through a listing n Amsterdam. Following the IPO, Universal will have three significant shareholders: Vivendi (20%), Tencent-led consortium (20%), and Vincent Bollore (16%). However, the French tycoon will retain a strong influence over Universal as a major shareholder, as he owns a 27% stake in Vivendi.

The news well received by the market, as Vivendi stock price jumped 20% during the Paris trading session, pushing its valuation at $38 billion.

Sources: investing.com, cnbc.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.