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