|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||27.25 - 27.51|
|52 Week Range||25.97 - 29.97|
|Beta (5Y Monthly)||0.59|
|PE Ratio (TTM)||25.19|
|Forward Dividend & Yield||0.56 (1.99%)|
|Ex-Dividend Date||Apr 15, 2019|
|1y Target Est||41.00|
The head of publisher Bertelsmann said its TV arm RTL should be allowed to merge with German rival ProSiebenSat.1, to give them a fighting chance against U.S. streaming giants. Thomas Rabe's comments - in an interview with Frankfurter Allgemeine Sonntagszeitung published on Sunday - come as European broadcasters explore ways to join forces against the onslaught from established players Netflix and Amazon Prime that are now being joined by Disney and Apple. ProSieben has become the focus of takeover speculation after Italy's Mediaset amassed a 15.1% stake in the Munich-based broadcaster towards the end of last year.
When Ukrainian billionaire Len Blavatnik acquired Warner Music for $3.3bn in 2011, he was buying into a declining industry. Music sales had shrunk every year for the past decade as piracy ravaged the business. The deal valued Universal at €30bn, well above the €6.5bn that SoftBank had offered for it in 2013.
French media conglomerate Vivendi said on Thursday it planned to list its most-prized asset, Universal Music Group, by early 2023 at the latest, following a year of record profit for the division. This represents a new milestone in a two-year process launched by Vivendi's top investor, Vincent Bollore, to make the most of the world's biggest music label, home to artists Taylor Swift, Drake and Lady Gaga. Chief Executive Officer Arnaud de Puyfontaine declined to give further details on the potential IPO but said Universal's stellar performance could draw further interest from investors.
French media conglomerate Vivendi said on Thursday it planned to list its most-prized asset, Universal Music Group, by early 2023 at the latest. Vivendi, controlled by billionaire Vincent Bollore, said Universal yielded record profits in 2019, with earnings before interest, tax and amortisation jumping by 22% at constant currency and perimeter from a year earlier to 1.12 billion euros ($1.21 billion).
France’s Vivendi dangled the possibility of taking its biggest business, Universal Music, public by “early 2023 at the latest” after the label that houses pop stars Billie Eilish and Taylor Swift posted record annual profits. The music business is enjoying a renaissance brought on by the advent of streaming music apps such as Spotify and Apple Music, which have convinced people to pay for music again instead of pirating it or relying on free outlets like YouTube. The industry’s “big three” labels — market leader Universal, Sony Music and Warner — control nearly 80 per cent of the market that is forecast to more than double by 2030 to hit $45bn, according to Goldman Sachs.
Mediaset will submit revised plans to merge its Italian and Spanish broadcasting units under a Dutch entity to authorities in the Netherlands, securing a six-month extension to complete the project, two sources familiar with the matter said. The extension could help the group deal with any potential delay triggered by shareholder Vivendi's legal challenges to the merger. Mediaset, controlled by the family of former Italian Prime Minister Silvio Berlusconi, wants to merge the units under a Dutch holding company, called MediaforEurope (MFE), to pursue a European growth strategy.
(Bloomberg) -- Warner Music Group Corp., the record group behind artists such as Cardi B, Ed Sheeran and Bruno Mars, filed for an initial public offering -- becoming the latest music company to cash in on the streaming boom.Backed by billionaire Len Blavatnik, New York-based Warner Music filed for an offering of $100 million. But that’s a placeholder sum used to calculate fees and is most likely to change.Blavatnik and other investors didn’t indicate in the filing how much stock they’ll be selling. But they are expected to retain control, while allowing Warner Music to raise funds for acquisitions and other deals, according to a person with knowledge of the matter who asked not to be identified.Music sales have surged in recent years thanks to the growth of paid streaming services from Spotify Technology SA and Apple Inc. That’s boosted the value of music companies and enticed investors back to the record industry.Vivendi SA agreed last year to sell a minority stake in Universal Music Group, the world’s largest music company, to a group led by China’s Tencent Holdings Ltd. That transaction valued the business at about $33.6 billion.Blavatnik, a Ukrainian-American, has a net worth an estimated $25.1 billion, according to the Bloomberg Billionaires Index. He bought Warner Music for $1.3 billion in 2011, when the music industry was in the depths of a 15-year decline. The proliferation of free and cheap music on the internet had destroyed sales.Good TimingThe timing was propitious. The company’s sales have climbed by 50% since 2015. The company reported net income of $258 million in fiscal 2019 on revenue of $4.48 billion. Apple and Spotify account for 27% of that revenue, according to the filing.“We adapted to streaming faster than other major music entertainment companies and, in 2016, were the first such company to report that streaming was the largest source of our recorded music revenue,” the company said in a filing.Morgan Stanley, Credit Suisse Group AG and Goldman Sachs Group Inc. are advising on the IPO.Famous LabelsWarner markets its music through labels such as Atlantic Records, Warner Records and Parlophone. It also owns Warner Chappell, a music publishing business. While the labels work with recording artists, publishers represent songwriters. Songwriters signed to Warner Chappell include Lizzo and Katy Perry. Recorded music made up 86% Warner Music’s sales last year, but publishing is a stable, profitable business.For a few years now, private equity investors have been paying high prices for closely held record labels and publishing outfits, betting on a long recovery for the industry.But there have been few opportunities for public investors, with the notable exception of the May 2018 public offering by Spotify, the world’s largest paid music service. Warner Music has been privately owned, while the two larger music companies, Universal and Sony Music Entertainment, are divisions of larger media and technology companies.“Looking into the future,” Warner Music said, “we believe the universe of opportunities will continue to expand, including through the proliferation of new devices such as smart speakers and the monetization of music on social media and other platforms.”(Updates with details of filing starting in third paragraph)\--With assistance from Elizabeth Fournier.To contact the reporter on this story: Lucas Shaw in Los Angeles at email@example.comTo contact the editors responsible for this story: Aaron Kirchfeld at firstname.lastname@example.org, Rob GolumFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
French media group Vivendi may take further legal action against Italy's Mediaset if it continues with a plan to merge its Italian and Spanish units, Vivendi's representative in Mediaset Espana Vincent Vallejo said on Wednesday. Controlled by the family of former Italian prime minister Silvio Berlusconi, Mediaset approved a merger of its Italian and Spanish units under a Dutch holding company called MediaforEurope (MFE) last September.
Moody's Investors Service, ("Moody's") has today downgraded Banijay Group S.A.S.'s ("Banijay") corporate family rating ("CFR") to B2 from B1 and its probability of default rating ("PDR") to B2-PD from B1-PD. Concurrently, Moody's has assigned a B1 rating to the new E953 million equivalent senior secured term loan B due 2025, E850 million senior secured notes due 2025 and the E170 million senior secured revolving credit facility due 2024, raised by Banijay Entertainment S.A.S. and Banijay Group US Holdings Inc. Moody's has also assigned a Caa1 rating to the new E400 million senior unsecured notes due 2026 issued by Banijay Group S.A.S.. Moody's has confirmed the B1 rating on the existing E365 million senior secured notes issued by Banijay Group S.A.S, which will be refinanced as part of this transaction, and its rating will be withdrawn upon repayment.
A Milan-based judge set Feb. 1 as the date for a new hearing for a request by France's Vivendi to suspend a corporate overhaul at Italy's top commercial broadcaster Mediaset, two legal sources said on Tuesday. Controlled by the family of former Italian Prime Minister Silvio Berlusconi, Mediaset wants to merge its Italian and Spanish units into a Dutch entity, dubbed MediaforEurope (MFE).
Netflix (NFLX) opens new Paris office and announces development of original French-language productions to expand presence in the country.
Italy's Mediaset on Friday won shareholder approval for governance tweaks needed to smooth a pan-European expansion plan despite opposition from its second-biggest investor Vivendi, which is fighting the project in court. Controlled by the family of former Italian Prime Minister Silvio Berlusconi, Mediaset last year approved a plan to merge its businesses in Italy and Spain under a Dutch-based company, called MediaForEurope (MFE).
An Italian court has thrown out a request by Vivendi to suspend a ruling forcing it to freeze two-thirds of its stake in Italian broadcaster Mediaset , a court document showed on Thursday. The decision comes a day before a Mediaset shareholder meeting to vote on governance tweaks to a Dutch holding company set up by Mediaset to pursue tie-ups with European peers.. Vivendi opposes Mediaset's plans on the grounds the changes would give Mediaset's main shareholder, the Berlusconi family, too much power.
A consortium led by Tencent (TCEHY) is buying a stake in Universal Music to expand the global footprint and strengthen competitive position.
(Bloomberg Opinion) -- Vivendi SA investors should be sighing with relief.The French media conglomerate announced on Tuesday that it plans to sell 10% of its Universal Music Group record label to a group led by Tencent Holdings Ltd., the Chinese internet giant. The 3 billion euro purchase ($3.4 billion) implies an equity valuation of 30 billion euros for all of UMG, as the music business is known. As my Bloomberg Opinion colleague Alex Webb wrote in August, Vivendi should gain strategic and financial advantage from the alliance with Tencent.Shareholders of Vivendi should be smiling that a deal got done at all. Vivendi first announced in mid-2018 plans to sell as much as half of UMG, which is home to musicians such as Drake and Lady Gaga. The process didn’t move quickly or in a straight line.Earlier this year, private equity investors and sovereign wealth funds became annoyed over what some potential suitors saw as a pricey deal and the slow pace of negotiations. That left fewer potential investors for UMG. Rich technology companies with an interest in music, including Google and Amazon.com Inc., were unlikely investors for UMG.When it announced the Tencent deal on Tuesday, Vivendi said it would look to sell a further minority stake at the price agreed to by Tencent or higher. The Tencent-led group has the option to buy up to 10% more of UMG in the next year at the same price. Vivendi, in short, has now set a floor on the value of UMG, and by extrapolation for Vivendi at large.Vivendi shares in Paris inched up slightly after the announced investment. Vivendi’s total market capitalization of about 30.6 billion euros implies that assets accounting for about 55% of Vivendi’s revenue — including the Canal+ broadcast group, the Havas advertising agency and a collection of publishing companies — are essentially valued at almost zero. The conglomerate discount on Vivendi and its mercurial controlling shareholder Vincent Bollore is likely to persist.UMG and the rest of the Big Three music labels — Warner Music Group Corp. and Sony Music Entertainment — remain in an odd spot. Technology changes that wrecked their business models have now helped revive them, but there is much more potentially wrenching change to come in the industry.Paid streaming music services such as Spotify and others have helped global record label revenue grow significantly for the first time since the 1990s, but industry revenue remains lower than it was at the peak of CD popularity more than 15 years ago. The record labels remain in a constant tug-of-war with technology companies that want to license music for apps such as TikTok and for internet services that are both expressly devoted to music and those that are not, including YouTube, which by some measure is the most popular music-listening spot in the world.Meanwhile, Spotify and other young streaming companies are trying slowly to cut out the record labels and strike deals directly with musicians. Streaming music companies constantly want to lower the fees they pay labels for the rights to songs; the music majors are constantly fighting for higher rates. Those strategic challenges won’t go away, nor will the imperative for the music industry to structurally change a business model still built in many way for the old mode of artist discovery, promotion and publishing. But Vivendi’s new partner can be a useful ally for a UMG’s expansion in China, a lucrative but tricky market for foreign music companies. Asia represented just 13% of UMG’s 2018 sales.Among Tencent’s large roster of investments is the separately listed streaming music service Tencent Music Entertainment. U.S.-listed depository receipts of that company rose 3% in early market trading Tuesday. Tencent Music is part of the consortium that is buying the stake in UMG and will have an option to buy a minority stake in UMG’s China business.The big price tag for Universal Music is a testament to the improving fortunes of the music industry. Once written off as has-beens, the music majors are in a better position than they have been for years. The question now for Vivendi investors is whether the Tencent deal will mark a new lucrative phase for Universal and other music industry powers, or if it’s a sign of a peak. To contact the author of this story: Shira Ovide at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2020 Bloomberg L.P.
Universal Music Group: it's the world's biggest music label, home to Lady Gaga, Taylor Swift, Ariana Grande, and greats like The Beatles. And, now to be shared with a consortium led by Tencent. Universal's owner Vivendi disclosing on Tuesday (December 31) that it has finalized an agreement to sell a 10% stake to the Chinese firm and its co-investors. The deal values Universal at $34 billion and the consortium has an option to buy another stake by early 2021. Talks between the two groups were first revealed in August. The agreement will allow both to expand in a recovering global market, with Tencent getting more access to U.S. artists and Universal tapping into Korea's K-Pop and other Asian stars. The revenues are there. 2018 saw a fourth year of strong growth after a decade of decline, much of the upsurge driven by Spotify and other streaming services. They made up nearly half of all revenues. The deal will also be music to the ears of Vincent Bollore, the French billionaire who controls Vivendi, and who has been seeking to cash in on the revival.