World

Universal Music Group shares soar with market debut

Lady Gaga will be performing at the Pepsi Zero Sugar Super Bowl 51 Halftime Show at NRG Stadium on February 5, 2017 in Houston, Texas.

Tom Pennington | Getty Images Sports | Getty Images

Universal Music Group shares soared on Tuesday’s stock market debut, making it Europe’s largest list so far.

The companies behind platinum-selling artists such as Lady Gaga and Taylor Swift have begun trading at around € 25.05 ($ 29.37) per share. This is more than 35% above the reference price of € 18.5 per share. Listed on the Euronext Amsterdam Stock Exchange.

In June, French media group Vivendi gained shareholder support for its premier UMG spin-off proposal. 60% of UMG’s shares will be sent to Vivendi’s shareholders.

UMG accounts for about three-quarters of Vivendi’s profits and raises questions about the company’s future strategy given that it owns only 10% of UMG’s stake after listing. An additional 20% is owned by Chinese giant Tencent and 10% by billionaire William Ackman’s hedge fund Pershing Square.

UMG is the world’s largest music company and, along with Warner Music Group and Sony Music, dominates the music industry as part of the “Big Three” record label.

It owns and operates businesses in more than 60 countries, lagging behind other common names for music, such as Ariana Grande and Queen. Its back catalog also includes iconic artists such as Bob Dylan and The Beatles, which were major attractions for investors.

Universal Music Group shares soar with market debut

Source link Universal Music Group shares soar with market debut

Back to top button