Ninety-nine percent of the Vivendi SE Shareholders have agreed to launch a Universal Music corporate spinoff.
Last June 22, a monumental decision was made by the Vivendi investors and shareholders favoring its intention for the Universal Music Group (UMG) spinoff.
Vivendi’s decision will allow the world’s most prominent music company to acquire a public image.
Shareholders approved the intention to allocate Universal’s 60% shares to the current Vivendi investors and shareholders. They also agreed to put the company on the Euronext Amsterdam stock exchanges list this September 21, 2021.
Universal Music administers the world’s number two music publishing company with a 40% domestic stock share and 30% worldwide.
In addition to the approved plan, Vivendi already has a 10% investment agreement with Pershing Square Tontine Holdings Ltd. (PSTH), owned by William Ackman, amounting to almost $40 billion.
Collaboration with Warner Music Group
According to Lucian Grainge, the Chief Executive of Universal, the investment of William Ackman is a substantial corroboration of the planned spinoff. He also added that two staunch investors, PSTH and Tencent, are powerful commendations to both technology and investment communities.
Tencent Holdings Ltd. owns 20% of Universal shares. The Chinese internet corporation made a 30 billion euros deal last year.
It is assumed that Universal will collaborate with the number three biggest recorded music company in the world – Warner Music Group Corp. in the open market. The Warner Music Group also owns leading labels such as Warner Records, Warner Chappell Music, Atlantic, and Elektra.
Since the debut of music company shares, the investments have climbed to 15% compared to the previous years.
Streaming to revive the music industry
The emergence of music and online streaming such as Apple Music and Spotify helps the music industry attract many investors.
In 2016, after 15 years of drought in the music industry shares due to piracy controversies, music commerce started to resurge as online, and music streaming became popular. Music streaming platforms destabilized the use of compact discs and digital downloading auctions.
Now, streaming has gained 80% profits in the United States alone and has a worldwide sales share of more than 60%.
Universal is home to famous music artists such as Billie Eilish, Queen and the Beatles, and the country music queen – Taylor Swift.