On September 21, the share price of Universal Music Group (UMG) skyrocketed after being listed on the stock market, bringing the company’s value past the $50 billion mark.
|Share price of Universal Music Group (UMG) has skyrocketed after being listed on the stock exchange. Photo: Reuters|
UMG is the record company behind the success of a series of world-famous bands and superstars such as The Beatles, Metallica, Taylor Swift, Lady Gaga or Kanye West… The votes of this music giant jumped from 18.50 euros to more than 25 euros ($29).
That impressive gallop has boosted UMG’s value to 46.3 billion euros ($54.3 billion), much higher than the $39 billion valuation on the night of September 20, before this company. listed shares on the Euronext Amsterdam exchange.
Music Business Weekly magazine rated the success as “beyond expectations for an impressive launch by UMG on the Amsterdam Stock Exchange”.
UMG is a subsidiary of Vivendi media group, owned by French billionaire Vincent Bollore – a powerful media tycoon. However, Vivendi is having a “floating” part of UMG to focus more on television, advertising and publishing.
Last month, Vivendi sold a 10% stake in UMG to the Pershing Square Capital Management group of American billionaire William Ackman. This move caused Vivendi’s own share price to drop more than 15% on the Paris CAC 40 stock exchange. In addition, Vivendi also sold 20% of UMG’s shares to Chinese technology company Tencent.