, Columnist
A French Billionaire Wants to Make Sweet, Sweet Music
Universal spinoff wouldn't be a surefire hit.
This article is for subscribers only.
For all the gushing about the music industry renaissance, investors have few ways to bet on the sector. Of the big labels, Universal Music Group and Sony Music are ensconced within conglomerate-style companies, while privately-held Warner Music Group only has listed bonds.
This will change if Vivendi SA sells a minority stake in Universal via initial public offering next year. Vincent Bollore, the tycoon who controls Vivendi, has been mulling this for months despite the questionable rationale. He seems to believe public markets are undervaluing its biggest unit, thereby hobbling Vivendi's share price.1502292536551