Vivendi SA has announced plans to sell up to half of its Universal Music Group division to take advantage of its current value due to the rise of streaming revenue. According to Bloomberg, UMG is currently valued at more than $20 billion and a sale of a stake in the business could raise up to $15 billion. The French media giant hopes to sell its share of UMG to one or more strategic partners but has no plans for an initial public offering due to its complexity.
The company is expected to begin the sale this fall, according to a statement, and could complete a deal within the next 18 months.
“We will only choose investors who are compatible with Universal Music Group’s current strategy,” CEO Arnaud de Puyfontaine told analysts on a conference call, according to Bloomberg.
