Music. French media conglomerate Vivendi says it will seek one or more “strategic buyers” for up to 50% of its world-leading Universal Music Group. Vivendi has ruled out a long-discussed IPO of UMG, whose revenues for first-half 2018 were €2.6bn – up 6.8%. Last year, Goldman Sachs valued it at $23.5bn (tripled in four years), ahead of the $20.1bn Sony Music. UMG (which has had eight of the top 10 albums of 2018) has been bolstering Vivendi’s profits in recent years: it was almost 70% of profit in first-half 2018. While the announcement seems to imply that Vivendi wants to raise some cash from Universal while retaining control, it may be hoping to flush out a full bid, without having to go to the time and trouble of an IPO. Whatever the Vivendi ambition, this week’s news is only the start of a process that might run for 12-18 months.
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Vivendi wants to sell 50% of Universal Music
