Universal Music Group shares soar on stock market debut
Adds details, stock price update
AMSTERDAM, September 21 (Reuters) – Shares of Universal Music Group UMG.AS jumped at the start of trading on Tuesday, while owner Vivendi VIV.PA spun the label into the biggest European list of the year.
Spin-off hands 60% of Universal’s shares to Vivendi shareholders, while US hedge fund billionaire William Ackman and Chinese Tencent 0700.HK due to retain a large slice alongside Vivendi’s 10%.
Universal Music Group (UMG) was trading at 25.61 euros at 7:10 a.m. GMT, up about 38% from its benchmark price of 18.50 euros, giving the world’s largest music label a market value of over 46 billion euros ($ 54 billion).
UMG is betting on a streaming boom led by Spotify POINT.N which has fueled royalty revenue and profit growth for several years still has a long way to go, in a music industry he dominates with Warner WMG.O and Sony Music 6758.T.
The company behind singers such as Lady Gaga and Taylor Swift is betting that a streaming boom that has fueled revenue and profits still has a long way to go, in an industry it dominates along with Warner. WMG.O and Sony Music.
Universal, whose other successful singers include Justin Bieber and Taylor Swift, hopes to build on deals with ad-supported sites like TikTok and YouTube as well as streaming services like Spotify.
Part of his business derives from the rights attached to his large catalog, and he also collects royalties for the artists he represents on social media platforms and in remote locations.
The COVID-19 pandemic has hit Universal’s live concerts and merchandising activities, but ad-supported revenue has picked up after a jolt.
Its IPO carries high stakes for the owner of Canal + Vivendi, who hopes in the longer term to get rid of a conglomerate discount which, according to him, has weighed on his shares. ($ 1 = 0.8522 euro)
(Reporting by Toby Sterling, Sudip Kar-Gupta; writing by Ingrid Melander; editing by Sarah White)
((email@example.com; +33 1 49 49 53 84;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.