The value of Universal Music Group has trebled in the past four years to approximately €20bn ($22bn).
That’s according to top brass at UMG parent Vivendi, speaking at its annual shareholders’ meeting today (April 25) in Paris.
General Counsel Frédéric Crépin, who sits on Vivendi’s management board, discussed previous valuations of UMG at the event, which took place at L’Olympia this morning. He revealed that UMG had been the subject of two takeover attempts in the past half-decade – both rejected by Vivendi. The first came in March 2013, when it received an indicative bid of €6.5bn.
Crépin stopped short at confirming who made this approach, but Japanese telco giant Softbank is rumored to have offered to buy UMG in 2013 before being spurned by Vivendi. Reports at the time suggested Softbank tapped out after making a US $8.5bn offer.
“WE DON’T HAVE A CRYSTAL BALL, BUT ONE THING IS CLEAR: MUSIC COMPANIES NEED TO SEIZE THE INITIATIVE; DRIVE FURTHER TRANSFORMATION; ALIGN BUSINESS MODEL INNOVATION WITH TECHNOLOGY INNOVATION; AND CONTINUE TO EXPAND THE WAYS OUR ARTISTS CAN ENGAGE WITH THEIR FANS.” – Said MICHAEL NASH, UMG
Interestingly, Vivendi Chairman (and 20%+ shareholder) Vincent Bolloré told shareholders today that certain investment banks now value UMG at €20bn ($22bn).
The last public valuation UMG received from a bank was in 2014, when Credit Suisse judged it to be worth €10bn.
These figures would suggest that UMG’s valuation has effectively trebled under the leadership of Sir Lucian Grainge. Grainge was appointed CEO of UMG in 2010 and then promoted to Chairman & CEO in 2011.