Universal Music Group parent company reportedly considering IPO

Universal Music Group could see an initial public offering if the music industry financials continue to improve. The label is owned by Vivendi, a Paris-based media conglomerate, and the parent company is considering floating a minority stake in its music business. Investment banks connected to Vivendi have reportedly been recommending a partial sale of UMG. In April. Universal was valued at about €20 billion ($22 billion).

“I remember the people a few years ago who explained to us that music was a dying business and would never recover,” CEO Arnaud de Puyfontaine told The Wall Street Journal (paywall). “I have a good memory, and facts are proving them wrong.”

Universal posted total revenue of about €5.27 billion ($5.83 billion) in 2016. Streaming revenue exceeded physical music sales for the first time at the label at €1.48 billion ($1.64 billion).

Anna Washenko

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