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No IPO: Vivendi Seeks To Sell A 50% Stake In UMG

Universal Music Group
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PARIS, France (CelebrityAccess) — Vivendi on Monday announced that it was no longer considering an IPO for Universal Music Group and was instead seeking a “strategic partner” to take a substantial stake in the company.

In their most recent earnings statement, Vivendi said they had ruled out a potential IPO due to its “complexity” and that they were seeking to sell up to “50% of UMG’s share capital to one or more strategic partners, in order to extract the highest value.”

UMG, which alongside Sony Music is one of the largest label groups in the world, controls a catalog that includes hits by Lady Gaga, Drake, Luke Bryan, and Migos among numerous others.

According to Vivendi, the potential sale would take place within the next eighteen months, and the French media conglomerate will soon be engaging banks to identify potential suitors.

Vivendi said they will establish a “floor price for the entry of partners into UMG’s share capital.”

UMG has been the subject of speculation about an IPO for months and in May, Vivendi revealed that they had formed a committee to formally evaluate an IPO/Spinoff for the label giant.

In recent weeks, Vivendi has been aggressively growing the live side of their business with several high profile festival plays, including the acquisition of the Garorock Festival, and the launch of a new event in Limoges.

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