Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Japan
  4. Japan Exchange
  5. Sony Group Corporation
  6. News
  7. Summary
    6758   JP3435000009

SONY GROUP CORPORATION

(6758)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Bollore to keep strong grip on Universal after $36 billion listing

02/15/2021 | 03:51am EDT

* Vivendi's shares soar on Universal's spin-off plan

* Vivendi's top shareholder Bollore to own 16% of Universal

* Transaction aimed at freeing up Universal's value -source

PARIS, Feb 15 (Reuters) - French tycoon Vincent Bollore will retain strong influence over Universal Music Group as a major shareholder following its planned 30-billion-euro ($36 billion) spin-off on the stock market by media conglomerate Vivendi .

Vivendi is seeking to extract the most value from its crown-jewel asset, the world's biggest music label and home to singers such as Lady Gaga and Taylor Swift, as the music industry rebounds from a long downturn thanks to streaming revenues.

The French conglomerate outlined plans at the weekend to distribute 60% of Universal's capital to its current shareholders via a listing in Amsterdam.

The news triggered a rally in Vivendi's shares in early Paris trading on Monday, valuing the group close to 31 billion euros ($38 billion).

Vivendi's market value is about the same as the enterprise value that it placed on Universal before it sold two blocs of 10% in the music label to a consortium led by Chinese group Tencent, in March 2020 and January this year.

"The whole transaction is aimed at freeing up the hidden value of Vivendi, whose market value has been inferior to that of Universal's itself lately," a source close the matter said.

At the end of this IPO process, which has to be approved by a shareholders meeting at the end of March, Universal's three biggest shareholders would be Vivendi (20%), the Tencent-led consortium (20%) and Bollore (16%).

As Bollore controls Vivendi via a 27% stake, this means directly and indirectly he will control some 36% of Universal.

Vivendi had previously said that it would list Universal by the start of 2023 at the latest.

However several institutional investors pressed the conglomerate to move more quickly, to take advantage of financial markets flush with cheap money, prompting Bollore to accelerate the timetable, according to the same source.

Bollore chose Amsterdam over other international financial centres, such as New York, to list the company, because it is "neutral" and more attractive to potential investors from China, including Tencent, which had been targeted by the previous U.S. administration, the source close to the matter added.

MUSIC STREAMING BOOM

Universal's capital distribution will take the form of a special dividend, under the plans to list the music label, which competes with the likes of Warner Music Group and Sony Music Entertainment.

Several analysts welcomed the proposals, citing investors' unabated appetite for content providers after the listing of Warner, and the revival of the music industry on the back of streaming revenues.

"This is what many shareholders have wanted and is a better outcome than Vivendi selling some of its UMG stake in an IPO," JPMorgan said in a note, adding that it estimated Universal's value was about 40 billion euros.

After a 15-year downturn, the music industry has rebounded in the past five years, with global recorded music revenues increasing by 8.2 percent in 2019 to $20.2 billion, according to the latest annual report by record industry trade group IFPI.

Streaming revenues have represented the bulk of the growth over the pas few years, pushing the share of streaming revenues to 56% in 2019, driven by 341 million paid subscribers.

Music streaming Spotify, the market leader, and rival Apple Music are the driving forces behind that trend.

($1 = 0.8244 euros) (Reporting by Mathieu Rosemain and Sudip Kar-Gupta; Editing by Jason Neely and Pravin Char)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. -1.06% 145.37 Delayed Quote.9.56%
BOLLORÉ SE -2.67% 5.11 Real-time Quote.55.23%
SONY GROUP CORPORATION -0.27% 12965 End-of-day quote.26.06%
SPOTIFY TECHNOLOGY S.A. 1.19% 232.94 Delayed Quote.-25.97%
TENCENT HOLDINGS LIMITED 0.96% 464.6 End-of-day quote.-17.62%
UNIVERSAL MUSIC GROUP N.V. -1.88% 23.18 Real-time Quote.0.00%
VIVENDI SE -1.64% 10.77 Real-time Quote.-58.49%
WARNER MUSIC GROUP CORP. -0.43% 44.02 Delayed Quote.15.87%
All news about SONY GROUP CORPORATION
02:32aSONY : Information Regarding the Q2 FY2021 Earnings Announcement (10/28)
PU
09/27SONY : Cowen Starts Sony Group at Outperform With $144 Price Target
MT
09/27SONY : Zee Entertainment investors renew board reshuffle demand - Business Standard
RE
09/25India merger of Sony, Zee to create TV powerhouse challenging Disney
RE
09/24Japan shares jump as financials, shippers shine
RE
09/24SONY : subsidiary in merger talks with Indian entertainment giant ZEEL
AQ
09/24Amazon launches service aggregating video streaming apps in India
RE
09/23Financials, shippers push Japanese shares higher
RE
09/22GLOBAL MARKETS LIVE : Airbus, Fedex, Google, McDonald's, Roche...
09/22SONY : Pictures Networks India, India's Zee Entertainment to Pursue Merger
MT
More news
Analyst Recommendations on SONY GROUP CORPORATION
More recommendations
Financials
Sales 2022 9 770 B 87 761 M 87 761 M
Net income 2022 775 B 6 957 M 6 957 M
Net Debt 2022 469 B 4 212 M 4 212 M
P/E ratio 2022 20,7x
Yield 2022 0,48%
Capitalization 16 077 B 145 B 144 B
EV / Sales 2022 1,69x
EV / Sales 2023 1,55x
Nbr of Employees 109 700
Free-Float 98,2%
Chart SONY GROUP CORPORATION
Duration : Period :
Sony Group Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SONY GROUP CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 20
Last Close Price 12 965,00 JPY
Average target price 15 125,00 JPY
Spread / Average Target 16,7%
EPS Revisions
Managers and Directors
Kenichiro Yoshida Co-Chairman, President & Chief Executive Officer
Hiroki Totoki CFO, Director, VP & Head-Business Administration
Shuzo Sumi Co-Chairman
Toru Katsumoto Chief Technology Officer, Executive VP, Head-R&D
Tsuyoshi Kodera Head-Information Systems & Security
Sector and Competitors
1st jan.Capi. (M$)
SONY GROUP CORPORATION26.06%144 891
PANASONIC CORPORATION19.78%29 990
LG ELECTRONICS INC.2.59%20 133
TCL TECHNOLOGY GROUP CORPORATION-6.07%13 898
SHARP CORPORATION-9.78%7 767
CASIO COMPUTER CO.,LTD.0.53%4 145