By Dhirendra Tripathi
Investing.com – Common Music inventory climbed 43% on its first day as a listed firm after being spun off by French media big Vivendi (OTC:).
The shares jumped to 26.45 euro (round $31) from their reference value of 18.50 euro on the Euronext Amsterdam inventory trade, giving the corporate a valuation of round 46 billion euro. This additionally made it Europe’s largest itemizing but this yr.
UMG is certainly one of three main labels who management the rights to a lot of the world’s best-known music acts, with its again catalog boasting iconic artists like Bob Dylan and The Beatles. It’s additionally behind at this time’s family names like Girl Gaga, Ariana Grande and Taylor Swift.
The itemizing follows Vivendi’s (PA:) choice to distribute 60% of UMG shares to shareholders of the mum or dad firm.
UMG accounts for round 75% of Vivendi’s income. Vivendi now owns solely a ten% stake in UMG whereas billionaire William Ackman’s hedge fund Pershing Sq. additionally owns round as a lot. China’s Tencent owns round 20%.
The spin off is a landmark within the restoration of the worldwide music publishing enterprise, which went into an extended, piracy-driven decline at the beginning of the digital age. The rise of the streaming mannequin has now comprehensively reversed that decline.
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