Universal Music Group Plans 2022 IPO

Shares To Be Offered

VIVENDI, the parent company of UNIVERSAL MUSIC GROUP, confirmed reports TODAY (10/21) that it plans to take the music company public in 2022. The long-anticipated move was announced as part of a third-quarter earnings report released YESTERDAY. Earlier this year, CHINESE media giant TENCENT acquired a 10% stake in UMG for $3.3 billion, with an option to acquire another 10% before mid-JANUARY of 2021.

Despite the pandemic, UMG’s results proved resilient, with overall revenues up 5.1% for the first nine months of 2020 and up 3% for the quarter. Recorded music streaming revenue climbed 22.6% and overall quarterly recorded music revenues were up by 11%. On the downside, physical sales were down 10.2% compared to the first nine months of 2019, while download sales declined by 20.1%.

Recorded music best sellers for the first nine months of 2020 included new releases from THE WEEKND, BTS, JUSTIN BIEBER and LIL BABY, as well as continued sales from INTERSCOPE's BILLIE EILISH and REPUBLIC's POST MALONE. 

Music publishing revenues grew by 15.6% compared to the first nine months of 2019, driven by increased subscription and streaming revenues, as well as the receipt of a digital royalty claim in the second quarter of 2020.

However, largely due to the pandemic’s effect on touring and retail, merchandising and other revenues were down 42.6% compared to the first nine months of 2019.

The report revealed, “Following the success of this significant strategic transaction, VIVENDI is pursuing its plan to sell additional minority interests in UMG with the assistance of several mandated banks. An IPO is planned for 2022. The cash generated by these transactions may be used by VIVENDI to reduce its financial debt and to finance a significant share buyback program and acquisitions.”

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