Universal Music goes public and soars beyond initial valuation of $39bn
Posted on: 21 septembre 2021, by : Stuart Dredge

The question of how much Universal Music Group is worth has been a hot topic in recent years. Escalating estimates from Goldman Sachs, for example, which valued UMG at $23.3bn in 2017, rising to $53bn in April 2021.
Or, more conservatively, with the €30bn (around $36.4bn at the time) valuation of UMG when a consortium led by Tencent upped its stake in the major label to 20% early this year.
From today, we’ll have an official – if changeable according to the whims of the market – valuation of the company, as it goes public on the Euronext Amsterdam exchange. The spin-off from parent company Vivendi has been a long time coming – not to mention buffeted by a global pandemic, and a late attempt at a SPAC-based investment that fell foul of regulators.
Still, it’s public listing day for UMG, and the reference price is €18.50 per share, which means an initial valuation of €33.5bn (just over $39bn) for the company. First day trading being what it is, we could see a few lumps and bumps for the share price before it settles down.
At the time of writing, the price has soared to €25.25, and thus a valuation of €46.3bn (around $54.3bn, which makes that latest Goldman Sachs figure look on the money for now).
The bigger picture here is partly one of investors’ bullishness about the music industry and music rights – a trend that extends past trading in public companies to include the continued frenzy of catalogue buyouts.
Also, with a growing number of the industry’s biggest players now public, and thus sharing more detailed figures on their businesses every quarter, we’ll have more insight into the mechanics of the streaming-era industry. Something that will influence the ups and downs of these companies’ share prices, but also the ongoing debate about how the streaming pie is shared out.
The post Universal Music goes public and soars beyond initial valuation of $39bn appeared first on Music Ally.
Source: Music ally

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