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UNIVERSAL MUSIC VALUED AT AROUND $50-BILLION AHEAD OF AMSTERDAM LISTING

PARIS AND AMSTERDAM Universal Music Group, the business behind singers such as Lady Gaga, Taylor Swift and the Weeknd, is valued at around €33.5-billion ($50.34-billion) ahead of the record label’s stock market debut in Amsterdam on Tuesday.

France’s Vivendi SE is spinning off Universal and on Monday set a reference price for the listing at €18.50 a share, according to a statement issued by Euronext. The Universal Music Group (UMG) listing will be Europe’s largest this year and will hand 60 per cent of shares to Vivendi shareholders.

Universal is betting a streaming boom led by Spotify that has fuelled royalty revenue and profit growth for several years still has a long way to run in an industry it dominates along with Warner and Sony Music, part of Sony Group Corp.

Its flotation carries high stakes for Canal+ owner Vivendi, which hopes to rid itself of a conglomerate discount. However, the listing raises questions about Vivendi’s strategy once it parts ways with its cash cow, in which it will retain only a 10-per-cent stake.

Several high-profile investors have also already snapped up large Universal stakes, banking in part on the group’s back catalogue, which includes the likes of Bob Dylan and the Beatles. They also hope deals with ad-supported software and social-media platforms will sustain its performance and valuation.

Vincent Bollore, the French media tycoon who is Vivendi’s controlling shareholder, will receive Universal shares worth €6-billion at Monday’s price.

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2021-09-21T07:00:00.0000000Z

2021-09-21T07:00:00.0000000Z

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