Source: Universal Music Group
A recognized world leader in music-based entertainment with operations in recorded music, music publishing, merchandising, and audiovisual content, Universal Music Group (UMG) is an undeniable force in the industry-shaping international sound. This year, the music conglomerate opens its doors and gets listed in a public offering on the Euronext stock exchange in Amsterdam.
Established in September 1934, Universal Music Group is one of the “big four” entertainment agencies and the most extensive record label globally, dominating 98% of the global music market with operations in over 68 countries. The company also carries influential subsidiaries in the music industry. Prominent among them are the record labels EMI Records, Decca Records, Capitol Music Group, Island Records, Motown Records, Virgin Music, Aftermath Entertainment, and many more.
In the business of offering artists coveted brand sponsorships and opportunities with a brilliant production team for more than eight decades, UMG houses global award-winning talents the likes of Akon, Eminem, The Rolling Stones, Alicia Keys, Billie Eilish, Elton John, Frank Sinatra, Carrie Underwood, Imagine Dragons among many others under its vast umbrella.
This year, UMG is set to go public in Amsterdam. The decision was announced in a released statement by the organization estimating the value of the record label at $36.4 billion after a consortium led by Chinese e-commerce giant Tencent Holdings increased its stakes and acquired a second 10% chunk of UMG equity taking its total holding to 20%.
The statement confirms that UMG parent Vivendi management board is considering “a distribution of 60% of UMG’s share capital to Vivendi shareholders via a special dividend.” Post-IPO, UMG will be approximately owned by the Tencent consortium 20%, by Vivendi 20%, other Vivendi shareholders 44%, and 16% directly by the Bolloré group (which already owns 27% of Vivendi).
Suppose the plan to distribute 60% of UMG share capital through the Euronext stock exchange in Amsterdam comes to fruition. In that case, it will mark a new era and solidifies the relationship between the companies as UMG would be in a privileged position and be able to utilize its increased financial flexibility to pursue dynamic development that would cement its pioneering role in the music and entertainment industry, accelerates its growth as a global leader to the advantage of artists and fans worldwide.
Chairman & CEO of Universal Music Group, Sir Lucian Grainge, also confirmed the news through an internal memo sent to the company’s global employees. On April 13, Sir Grainge announced new appointments within the company’s corporate and finance team based at the new headquarters in Hilversum, Netherlands.
The new positions which are effective immediately are part of the company’s strategic development and preparation for the proposed public offering on Amsterdam’s Euronext stock exchange. As the company goes public, the new executives will help navigate the way as a free-standing company. Appointed as the new Deputy CEO Corporate, Vincent Vallejo will be reporting directly to Sir Grainge. Before his new appointment, Vincent has worked with UMG since joining in 1998 and risen through the ranks most recently as VP, Audit, and Special Projects.
Learn more about Universal Music Group and stay updated with its growth by visiting its official website.
References:
https://www.hollywoodreporter.com/news/vivendi-plans-ipo-for-universal-music-group-by-end-of-2021
