Why Universal Music Could Pursue a Dual Listing on the New York Stock
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Bulletin YOUR DAILY ENTERTAINMENT NEWS UPDATE JULY 1, 2021 Page 1 of 22 INSIDE Why Universal Music Could • SBA Has Delivered Pursue a Dual Listing $1 Billion in Shuttered Venue on the New York Stock Exchange Grants BY GLENN PEOPLES • How Hyperpop Became a Force Capable of Reaching When the Universal Music Group becomes a public trade at higher multiples. Adjusting for that differ- and Rearranging the company in September, it could list on a U.S. stock ence and focusing only on internet stocks shows the Mainstream exchange in addition to its planned listing on the European stocks trade at a 7% premium compared to Amsterdam Euronext, providing the newly public U.S. stocks, Barclays analyst noted in a • Curb Records Sues Julien Roche Tennessee Governor company access to a fresh group of investors. March 4, 2021 report. Over Anti-Trans That news came during a three-hour presentation Pershing Square Tontine Holdings will acquire that Signage Law on June 23 by Pershing Square and its CEO Bill Ack- 10% stake in UMG at a €35 billion valuation, a price about the definitive agreement reached by UMG that will give PSTH investors upside if UMG trades • Motown Records man Hires Brian Nolan parent Vivendi and Pershing Square’s SPAC, Pershing at higher values assigned by multiple equity analysts. to Lead Marketing Square Tontine Holdings, to acquire a 10% stake in Ten analysts tracked by Billboard have an average Team UMG, which will spin off from Vivendi this fall. UMG valuation of €39.8 billion and range from J.P. A dual listing provides a company with addi- Morgan’s €50 billion to Citi’s €30 billion. • Instagram to Lean Into Video Amid ‘Stiff tional liquidity and demand from U.S. investors, says Until the PSTH deal, the best reference point for Competition’ With Bernstein analyst Matti Littunen. “Some U.S. funds UMG was Tencent’s purchase of a 20% stake in UMG TikTok, YouTube are only allowed to invest in U.S.-listed stocks, for at a €30 billion valuation nearly two years ago. But the example, and a dual listing would lower transaction music business’ outlook has arguably improved since MARKET WATCH costs and risk for all U.S. investors.” Also, listing on a then: UMG’s revenue and operating margins are grow- PAGE 19 U.S. exchange “would address any risk to a discount,” ing by double digits and the global recorded music SONGWRITERS said Ackman, referring to the discount that European market is consistently growing by high single digits. & PRODUCERS stocks trade at relative to U.S. stocks. The U.S. government does not have laws or regula- CHARTS One reason U.S. stocks trade at a premium is be- tions that would preclude a dual listing, noted Ack- PAGES 20 - 22 cause the U.S. has relatively more “growth” stocks that (continued) TOTAL IMMERSION ESSENTIAL ANALYSIS of the latest business topics and trends formulated to give industry players the competitive advantage in a rapidly changing market. EXCLUSIVE QUARTERLY REPORTS that deliver in-depth, holistic reporting; case studies; and custom data designed to serve the industry. A DEEP DIVE LIBRARY stocked with intelligence on fan data, SUBSCRIBE TO BILLBOARD PRO FOR song catalog sales, TV synchs, Africa’s burgeoning music ACCESS TO NEW REPORTS business and the gaming industry’s embrace of artists. AND THE ARCHIVE Panos Panay Harvey Mason jr. Valeisha Butterfield Jones Co-President CEO Co-President A BOLD NEW ERA IS HERE The next generation of Recording Academy leadership. GRAMMY.COM Page 3 of 22 IN BRIEF man. “In fact, I’ve spoken to the New York would vastly prefer a New York Stock Ex- Stock Exchange at length,” Ackman said. change or Nasdaq listing for the company.” SBA Has Delivered “They would love to have Universal listed Ackman also said that UMG could choose on the exchange. They are going to pre-clear to trade as American depository receipts, $1 Billion in Universal once they see the prospectus for a common option for foreign companies Universal filed in Amsterdam.” UMG’s board that gives investors the right to obtain the Shuttered Venue of directors — not Pershing Square, Ackman foreign company’s share. was careful to say — would make the deci- But a dual listing also comes with ad- Grants sion to pursue a dual listing. But, he contin- ditional costs — especially a full listing on ued, if the board chooses that route, “listing a stock exchange rather than an American BY TAYLOR MIMS on the exchange could happen within a depository receipt. “In addition to exchange matter of weeks” after the September listing listing fees, they’d have to comply with SEC s of today (June 30), the Small on the Amsterdam Euronext. disclosure and reporting requirements, Business Administration has Seeing UMG’s stock on a U.S. exchange which can be onerous even for a large com- delivered $1 billion in Shuttered is hardly a done deal, however. Although pany,” says Littunen. Venue Operator Grant funds to Ackman spoke with certainty about a dual If the new UMG board opts for a dual theA accounts of independent promoters, listing, he later tempered his previous listing, Ackman estimates it would happen venues, movie theaters and more, accord- comments, saying UMG could “possibly, between the Sept. 27 listing on the Amster- ing to the organization. The SBA informed someday [list] on a U.S. exchange — hope- dam Euronext — Vivendi says the listing will those on the daily SVOG stakeholders call fully someday soon.” A Pershing Square happen by that date — and when Persh- this morning that another $1 billion in funds representative declined to comment for this ing’s SPAC distributes its UMG shares to has been awarded to businesses, but has not article, while a Vivendi representative did investors sometime around Thanksgiving. yet been deposited in their accounts. not respond to requests for comment. Bernstein’s timeline has September 21 as The SBA has seen a faster rollout of In Pershing Square, Vivendi has a blue- the listing day and September 23 as the day award notifications in the past two weeks chip, high-profile U.S. investor. “One of the shares will be allocated to Vivendi share- after failing to deliver all Priority 1 busi- reasons why Vivendi chose us as a counter- holders. nesses — those who lost 90% or more of part in this transaction is really because of Many music-related companies are listed their revenue in 2020 — in the first 14 days our shareholder list,” said Ackman. “We’ve on U.S. exchanges: Warner Music Group, of funding. got a lot of fantastic, long-term investors” Spotify, Tencent Music Entertainment, Siri- According to this morning’s stakeholders that are “predominantly” based in the usXM, Live Nation and iHeartMedia, among call, 2,919 award approval letters have gone U.S. and are not typically shareholders of others. If Universal Music Group pursues a out in total. Another 2,929 award notifica- Vivendi, which trades on the Euronext Paris U.S. exchange, it will attract investors with tions have been queued up to go out. An ad- exchange, he added. “We’ve heard from both knowledge of its business and the digital and ditional 265 applicants have received decline institutions and retail investors that they broadcast companies that use its music. notices, with another 1,400 set to be declined. AUTHORITATIVE INTELLIGENCE. DELIVERED DIGITALLY. CLICK HERE FOR FREE DELIVERY DIGITAL NEWSLETTERS Congratulations, 2021 BILLBOARD COUNTRY POWER PLAYERS Including our very own Diane Pearson and Lori Badgett. Diane Pearson Lori Badgett SVP and Team Leader SVP and Team Leader Entertainment Division, Entertainment Division, Nashville Nashville Discover The way up® at cnb.com. City National Bank Member FDIC. City National Bank is a subsidiary of Royal Bank of Canada. ©2021 City National Bank. All Rights Reserved. 431479 BILLBOARD COUNTRY UPDATE APRIL 13, 2020 | PAGE Page 4 5OF of 1922 ON THE CHARTS JIM ASKER [email protected] IN BRIEF SamHunt’s Southside Rules Top Country TheA SBA’slbu grantms; website Brett states that rough Young- ‘Catch’-es Fifthduo Airplay named 100 gecs, and the scene of like ly 27% of the more than 14,600 applications How Hyperpop minded musicians who seemed to be form- are currentlyLea under review,der; with Travis another Denning Makes Historying around them. Artists operating under 21% awaiting consideration. About 1,600 Became a Force the Hyperpop rubric — from established applicants will be receiving a notice to fix stars like Charli XCX to Gen Z newcomers Samtechnical Hunt corrections’s second studio from full-length, the SBA andas well. first in overCapable five years, Southside ofsales (up 21%) in the trackinglike week. osquinn On Country and ericdoa Airplay, —it hops have 18-15 concur (11.9- mil- (MCAAccording Nashville/Universal to an SVOG stakeholder, theseMusic Group Nashville), are debuts at No. 1 on Billboard’s lion audience impressions, rentlyup 16%). played a hand in boosting it from a Topentities Country that meet Albums the chart criteria dated Aprilfor approval, 18. In its first week (ending April 9), it niche internet scene to a viral talking point, earned 46,000 equivalent album units, including 16,000Reaching in album sales, ac- andTRY TO ‘CATCH’ UP WITH YOUNG Brett Youngachieves his fifth consecutive cordingbut something to Nielsen in Music/MRC their application Data. needs to and total Country Airplay No.having 1 as “Catch” received (Big unexpected Machine Label cosigns Group) from ascends beSouthside fixed. The marks SBA Hunt’s is working second on No. a 1process to on the Rearranging the the2-1, likes increasing of YouTuber 13% to 36.6 pewpiedie million impressions.