Universal Music Group, the Big Three music label that's part of Vivendi (VIVHY +0.5%), is now worth about €20B: So say the investment banks hoping to convince Vivendi to float part of the unit in an initial public offering.
Bankers are telling Vivendi that selling 10-15% would provide funds for its appetite for acquisitions, Reuters reports -- perhaps in the beachhead it's trying to establish in southern Europe.
Most analysts, however, value UMG around €12B. Sales grew 4.4% last year at the unit, with help from streaming revenues that grew 60%.
UMG recently set a deal with Spotify for streaming its artists and reportedly secured a two-week new release window from the music service in return for accepting smaller royalty rates.