(BFM Stock Exchange) – UMG announced on Monday evening that it had filed documents in order to break into the New York Stock Exchange. This decision is linked to an agreement established with the famous investor, Bill Ackman.
Universal Music Group (UMG), the famous record company which has heavy goods vehicles in its ranks such as Taylor Swift, Ariana Grande, Billie Eilish, or Kendrick Lamar, is going to be on the New York Stock Exchange.
In a short press release published on Monday evening, the company announced that it had submitted preparatory documents with the Securities and Exchange Commission (SEC), the American gendarme of the Stock Exchange.
UMG, which was listed on the stock market by Vivendi in Amsterdam in 2021, indicates that this operation is linked to the will of “certain shareholders” to sell titles. “Universal Music Group will not receive any product from the sale of ordinary shares by the sellers shareholders,” added the group without giving more details.
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A desire for a famous American investor
Why UMG made this decision and why now? Everything goes back in 2021. On that date, the American Fund Pershing Square, led by the famous investor Bill Ackman, whose fortune is evaluated at $ 9.5 billion by Forbes, had obtained a “recording right” so that Iumg is listed in New York, either on the New York Stock Exchange, or on the Nasdaq.
In January 2025, Bill Ackman exercised this “law”. An agreement then established with UMG provided that the record company would introduce itself to the New York Stock Exchange in the year if Pershing Square sold $ 500 million in UMG shares. Pershing Square then held $ 3.3 billion in the group’s titles.
A few weeks later, in March, Bill Ackman sold 2.7% of the capital of UMG for a total amount of 1.3 billion euros. As of March 13, the investor, via his fund, had 4.74% of the capital of the record company.
Bill Ackman may very well have decided to further reduce the wing and could thus be a part “shareholders”, quoted by UMG, who wanted to give in titles.
In its press release, the company explains that the number of shares that would be sold, as well as the price of transfers of these titles, were still to be determined.
Increase liquidity
What interest for the record company to have a second rating in New York? Bill Ackman himself gave several reasons in January in a post on X (ex-Twitter).
“We believe that (a rating in New York) will considerably increase the demand (and valuation) of UMG shares on the part of investors who, by their mandate, can only invest in listed securities on American scholarships,” he explained. The investor added that this operation would lead more analysts to cover the title, which tends rather to positively influence an action (when it is obviously a fit company).
“We also believe that the American rating will considerably improve the liquidity of the actions,” concluded Bill Ackman.
Recall that Spotify, the undisputed leader in the broadcasting online music (Audio streaming) is listed in New York and not in Europe while the company was founded in Sweden.
In Amsterdam, UMG action takes 1.5% around 11:10 a.m. on Tuesday July 22 following these announcements. In Paris, Vivendi, which still has a little less than 10% in the capital of the company, which by far represents its most important asset, fell back on its side of 0.8%.
Since the beginning of the year, UMG action has been 11.3% since the start of the year, an almost online performance with that of all European markets.
The company had notably revealed greater growth in the expectations in paid streaming in the first quarter. This increase in income, from 9.3% over a year, had also greatly exceeded that of its scholarship comparables, Warner Music Group (+3.2%) and Sony (+2% in dollars for the music division of the Japanese group) over the same period.
The UBS bank believes that UMG growth should further accelerate in 2026, thanks to its streaming agreements, notably with Spotify. In a note written in June, the Swiss bank considered that an introduction to New York would constitute “a catalyst”.
The Disques Maison will publish its results in the second quarter and the first semester on July 31.
Julien Marion – © 2025 BFM Bourse
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