Vivendi looking at possibility of Universal Music IPO

French media group Vivendi is looking at the possibility of listing Universal Music Group (UMG), its CEO Arnaud de Puyfontaine told its annual general meeting in Paris.

Speculation about the move began after Goldman Sachs valued UMG at US$23.5 billion last August.

UMG is the largest record label in the world, generating revenues of €5.673 billion (A$9 billion) last year.

Its streaming revenue doubled from 2015 to 2017, from €954 million ($1.5 billion) to €1.97 billion ($3.1 billion).

In addition the success of its artists – which includes Drake, Taylor Swift, The Beatles, Armin Van Buuren, Demi Lovato and Eminem – gave it a 29.7% share of the global recorded music market last year.

Its success lifted the music company’s value and drove up Vivendi’s share price.

UMG was responsible for 46% of Vivendi’s revenue in 2017

“We have started work that will allow us to present the benefits of a potential listing of UMG to the supervisory board,” de Puyfontaine confirmed to shareholders.

Vivendi’s share price were up 3.4% after his comments.