Universal Music Group Shares Debut On Euronext Exchange, Jump 35% In Opening Day Trading

Grainge: Let’s Make A Deal (Photo: Kathy Hutchins / Shutterstock.com)

UNIVERSAL MUSIC GROUP’s debut on the EURONEXT AMSTERDAM stock exchange TUESDAY (9/21) saw the company’s shares leap 35% from its reference point of  €18.5 to €25, valuing the company at €45 billion ($52.8 billion), up from the valuation in AUGUST when WILLIAM ACKMAN’s PERSHING SQUARE HOLDINGS LTD. bought 10% of UMG but below some WALL STREET projections, which were as high as €54 billion. CHINA’s TENCENT owns 20% of UMG; VIVENDI retained 10% in the spinoff.

UMG’s assets include BOB DYLAN’s publishing catalog, which it acquired for $300 million, a move which signaled the company was willing to spend aggressively on talent and content moving forward.

The IPO follows this year’s RIAA report, which showed a 27% growth of the record business at midyear (NET NEWS, 8/14).  The U.S. record business generated $12.2 billion last year, accounting for more than half of the $21.6 billion global pie, according to IFPI.

SIR LUCIAN GRAINGE, who masterminded the deal, is projected to make at least $150 million from the IPO, and even more in bonuses depending on the final stock price.

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