BY Issah Olegor
Universal Music Group (UMG), the world’s largest music label, has confidentially filed for a US listing, seeking to sell its shares in the American stock market.
This move comes as the company’s valuation in the Netherlands, where it’s currently listed, stands at approximately €49.65 billion ($74.3 billion).
UMG’s impressive roster includes global superstars like Taylor Swift, Drake, Billie Eilish, Ariana Grande, and Harry Styles.
Motivation
The decision to list in the US is reportedly backed by billionaire investor Bill Ackman’s hedge fund Pershing Square, one of UMG’s major shareholders.
In January, Ackman expressed his support for a US listing, stating it would increase UMG’s value and improve trading liquidity for its shares.
This development is seen as a strategic move to tap into the robust US equity market, which has shown signs of rebounding after a brief slump triggered by concerns over President Donald Trump’s tariff policies.
Confidential Filing and Regulatory Process
UMG has submitted a confidential statement to the US Securities and Exchange Commission (SEC), a step that allows companies to keep financial and strategic information private while engaging with regulators.
The potential public offering remains subject to SEC review.
The company hasn’t disclosed the size of the planned US offering or the expected funds to be raised.
UMG’s Music Empire
As a global music conglomerate, UMG owns prominent record labels such as Motown Records, home to legendary artists like Marvin Gaye and Michael Jackson, and Capitol Music Group, which boasts an impressive lineup including the Beatles and Katy Perry.
UMG’s artists have dominated the music industry, with Drake’s songs alone garnering billions of streams on platforms like Spotify.
Some of his most popular tracks include “One Dance” with over 3.7 billion streams, “God’s Plan” with over 2.8 billion streams, and “Passionfruit” with nearly 2 billion streams.
Recent Developments
In 2024, UMG was involved in a high-profile dispute with TikTok over royalties, resulting in the removal of its music from the platform until an agreement was reached in May.
