Universal Music Group won’t go public

Universal Music Group is scrapping any plans of going public — and as a substitute, its father or mother firm will start to pitch a 50 p.c stake on this planet’s largest music label to potential companions. The father or mother, Vivendi, mentioned Monday an IPO within the label — dwelling to Taylor Swift, Jay-Z, Rihanna, Sam Smith and lots of others — was dominated out as a result of “complexity.” The French media agency, which additionally owns pay-TV community Canal Plus, mentioned it’s searching for “a number of strategic companions as a way to extract the very best worth” from UMG. Music labels, left for lifeless a decade in the past, have been revived in recent times due to the expansion of music streaming. Chatter over a possible IPO started final August, when Goldman Sachs valued UMG at $23.5 billion. One other second got here quickly after, in January, when JPMorgan Cazenove issued a report that asserted if Spotify was value $20 billion, then UMG was value greater than $40 billion. UMG’s sale course of will possible kick off this fall and might be accomplished throughout the subsequent 18 months, Vivendi mentioned — including that it’s going to quickly be partaking banks to assist determine strategic companions. For the primary half of 2018, UMG logged revenues of $3.08 billion, up 6.eight p.c over the year-ago interval. Half-year income weren’t disclosed. The group’s recorded music sector expanded its revenues by 7.four p.c, thanks partly to a 34.Three p.c leap in streaming revenues that offset steep declines in obtain and bodily gross sales. Share this: https://nypost.com/2018/07/30/universal-music-group-wont-go-public/ The post Universal Music Group won’t go public appeared first on My style by Kartia.