Vivendi Is Set To Spin Off Universal Music Group With An IPO By The End Of 2021

IPO In The Works

VIVENDI, the FRENCH media conglomerate, is signaling that it has plans to spin off the world's largest music label,  UNIVERSAL MUSIC GROUP (UMG), in an IPO by the end of 2021, valued at a price of at least $36.4 billion. It plans for the stock to be traded on the EURONEXT NV exchange in AMSTERDAM, the largest stock exchange in EUROPE according to THE HOLLYWOOD REPORTER. 

Run by CEO LUCIAN GRANGE, UMG is one of the big three alongside, SONY MUSIC and the WARNER MUSIC GROUP, and is the home of TAYLOR SWIFT, LADY GAGA, KANYE WEST, RIHANNA, LIL WAYNE, THE ROLLING STONES, POST MALONE, BILLIE EILISH, BILLY JOEL, J. BALVIN, COLDLY, CARRIE UNDERWOOD, KEITH URBAN, LUKE BRYAN and many more.

VIVENDI, which owns 80% of UMG, noted that it would also distribute 60% of the company's share capital to existing shareholders. CHINA's TENCENT consortium holds the other 20% and upped it's previous holdings by 10% in DECEMBER 2021 for $3.7 billion.

A special meeting will be held in MARCH to vote on a change to the corporate by-laws, which would allow the transactions to take place. Once those are approved, a separate vote will be scheduled to approve the UMG spinoff and distribution of stock.

WARNER MUSIC GROUP, controlled by ACCESS INDUSTRIES, had a successful IPO last year, raising $1.9 billion at a $15 billion valuation.

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