Universal Music Group 'worth £17 billion'

Universal Music Group 'worth £17 billion'

Universal Music Group (UMG) is worth around €20 billion (£17 billion), according to execs at its parent company Vivendi.

UMG sales grew by 4.4% last year, aided by a 60% boost from streaming revenues. Bankers, looking to persuade Vivendi to float UMG, have told the Paris-based firm that selling 10 to 15% of the company would provide funds for other acquisitions, reports ReutersBut sources say no investment bank has been mandated at this stage for such an IPO.

"Today, estimates given by banks proposing an initial public offering can go up to €20 billion," Vivendi general counsel Frederic Crepin told the company's annual shareholder meeting.

Crepin said that Vivendi received a €6.5bn (£5.5bn) bid for UMG in 2013 and a preliminary expression of interest of €13.5bn (£11.4bn) two years later. He did not name the bidders but Reuters sources say the second offer was made by Liberty Media Corp. chairman John Malone.

Most analysts currently value UMG around €12bn (£10.2bn). Earlier this month UMG signed a new, multi-year global license agreement with Spotify, meaning Universal artists will be able to release new albums on premium-only for two weeks.

 
 
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