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With a valuation greater than $40 billion, UMG is easily the biggest record label and music company in the world. But who exactly who owns Universal Music Group? The answer to that question keeps changing — here’s the latest, most up-to-date breakdown.
Over the weekend, we first reported that special acquisition company (SPAC) Pershing Square Tontine Holdings had officially acquired a 10 percent stake in Universal Music Group. The price of approximately $4 billion pushed the overall valuation of Universal Music Group solidly past $40 billion, with potentially greater valuation growth ahead. So with that deal complete, exactly who owns Universal Music Group, and in what percentages?
Pershing’s latest deal shifts the mix of who owns Universal Music Group once again, with the company now owned in various percentages by Vivendi SE, Tencent Holdings Ltd, and Pershing Square Tontine Holdings (PSTH). Specifically, Vivendi SE still owns 70% of Universal Music Group, while Tencent Holdings retains 20%, and Pershing Square Tontine Holdings holds 10%.
“After the 20% equity stake acquired by the Consortium led by the Tencent group, the arrival of major American investors provides further evidence of UMG’s global success and attractiveness,” Vivendi confirmed followed the PSTH acquisition.
That breakdown will markedly shift in the coming months, however, as Vivendi continues to parcel out shares in its high-earning label group.
The biggest change will happen in the fall, when Vivendi spins off shares of Universal Music Group on the Euronext Amsterdam exchange. Specifically, the Euronext public offering (IPO) will involve a 60% selloff, with Vivendi retaining a 10% ownership stake. Vivendi is expected to trigger its UMG offering during the third quarter, with recent estimates suggesting a late-September date.
The IPO would quickly position Tencent as the largest single shareholder, giving the Chinese-owned media conglomerate considerable sway over future corporate decisions.
Incidentally, UMG will be the second major label to go public, behind Warner Music Group, which trades at WMG on Nasdaq. Other music industry have also beat UMG to become publicly traded, including Spotify and Hybe Corporation (previously known as Big Hit Entertainment).
Artists in Universal Music’s deep roster include J Balvin, Taylor Swift, Post Malone, Morgan Wallen, DaBaby, Maroon 5, ABBA, Nas, Mumford & Sons, Lewis Capaldi, Daddy Yankee, Adele, and Andrea Bocelli.
“Universal Music Group is one of the greatest businesses in the world,” Bill Ackman, CEO of PSTH stated following his SPAC buyout. “Led by Sir Lucian Grainge, it has one of the most outstanding management teams that I have ever encountered.”