Universal Music Group Stock: Expected Availability, Valuation Estimates

Universal Music Group Stock: Expected Availability, Valuation Estimates

Universal Music Group stock isn’t publicly traded yet, though its IPO is slated for September of this year.

At a valuation of more than $40 billion, Universal Music Group is easily the world’s largest record label and music company. The makes the upcoming offering of Universal Music Group stock an extremely attractive bet for investors, especially given the successful IPOs and direct listings of music industry companies like Spotify (Nasdaq: SPOT), Warner Music Group (Nasdaq: WMG), Hybe Co. Ltd (KRX: 352820), and Tencent Music (NYSE: TME).

Here are some critical details for interested investors ahead Universal Music Group’s public offering.

Current Ownership Structure and Expected Short-Term Changes.

Universal Music Group is currently majority-owned by Vivendi SA, which carries a 70% ownership share. Other partial owners are Tencent Holdings Ltd., which owns a 20% stake, and Pershing Square Tontine Holdings (NYSE: PSTH), a special purpose acquisition company (SPAC) that recently purchased a 0% stake at a $40 billion-plus valuation.

With strong shareholder support, Vivendi SA has issued plans to offer a 60% stake in an upcoming initial public offering (IPO) while retaining a 0% share.

IPO Details: Schedule, Expected Valuations.

Vivendi is currently scheduled to trigger its Universal Music Group IPO in late September on the Amsterdam Euronext exchange. The exact IPO date has not been slated, though the offering will unleash a large tranche of Universal Music Group stock shares, with hopes for further company valuation boosts.

Other IPO details have yet to be released, including available shares and opening share price pegs. In terms of pre-allocation of shares, owners of Pershing Square Tontine Holdings will be offered an immediate allocation of Universal Music Group stock shares, as will certain pre-IPO shareholders (including prioritized Vivendi owners).

Separately, all stakeholders in Tencent Holdings will indirectly benefit from the UMG IPO, though it remains unclear if certain Tencent owners will also receive prioritized UMG pre-IPO shares.

Others will be purchasing IPO shares directly through the Amsterdam Euronext.

Important Note: Universal Music Group stock is not Universal Media Group Inc. (OTC: UMGP)

The two stocks may be easily confused, though these are entirely different companies. Universal Media Group, which is not affiliated with either Universal Music Group or Vivendi SA, “provides VFX consultation, art production, and management services to the video game, film, and television [industries],” according to a company description.

We’ll have more details on the UMG stock as they emerge, including specifics related to pricing, date availability, and analyst ratings.

Chris
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