Business

UK Music mogul Sir Lucian Grainge set for a £100m in Universal float

UK music mogul Sir Lucian Grainge is set for a £100m windfall as Universal floats in Amsterdam












The British boss of Universal Music Group is set to scoop a bonus price greater than £100million because the company floats on the stock market.

Music mogul Sir Lucian Grainge will rake in round £104million if he pulls off the itemizing in Amsterdam this month, in keeping with paperwork printed yesterday.

This is on high of a pay package deal price as much as £30.4million.

High notes: Sir Lucian Grainge (pictured with singer Taylor Swift) will rake in round £104m if he pulls off the itemizing in Amsterdam. This is on high of a pay package deal price as much as £30.4m

Grainge was handed £15m final February after orchestrating the sale of 20 per cent of Universal to a group of buyers led by Chinese web big Tencent, and is set to pocket a comparable bonus this month after promoting 10 per cent to Pershing Square, the hedge fund led by US billionaire Bill Ackman.

And he’ll profit from a long-term incentive plan, which the company has but to determine. Universal additionally revealed that Grainge is ‘entitled to using a automotive, with a driver, for business and cheap non-public use’.

The investor prospectus added: ‘Sir Lucian is supplied with using a chartered or non-public plane for business functions, topic to requiring prior approval for any such utilization in extra of €410,000 each year.’

Grainge, 61, has spent his whole career in the music trade, working with stars from Amy Winehouse to the Rolling Stones. 

He joined Universal in 1986 and helped launch report label Polygram, which grew to become one of many UK’s high three music publishers in simply 5 years.

By 2011, the Londoner who now lives in Los Angeles along with his spouse Caroline, had labored his means as much as changing into the chairman and chief govt. 

In his first year in cost, he orchestrated the rescue of beleaguered music big EMI following its bruising interval underneath the possession of personal fairness agency Terra Firma.

Now Universal, whose roots hint again to 1934, takes care of music from the likes of Taylor Swift, Billie Eilish and Take That. 

The company, which has been majority-owned by French media big Vivendi since 2000, is set to float in Amsterdam subsequent week with an estimated worth of £28billion.

Vivendi’s main shareholder, Vincent Bollore, will probably be left holding round £5billion price of Universal stock, because it palms out round 60 per cent of Universal’s shares to its personal buyers. 

Vivendi has been underneath stress to spin out Universal for a number of years, as analysts stated the music business was price greater than Vivendi’s share worth implied.

The preliminary public providing (IPO) has now ignited hypothesis about what Bollore, and Vivendi, will do with the windfall.

The deal may even symbolize a wholesome payday for Pershing Square, whose 10 per cent stake in Universal will probably be price round £2.8billion. The consortium led by Tencent will hold its 20 per cent stake price £5.6billion.

Last year, Universal raked in revenues of £6.3billion, and made a revenue of £1.2billion.

It now makes its money from royalty sources together with digital downloads and streaming, gross sales of CDs or vinyl information, reside performances and using its music on TV exhibits or adverts.

In the early 2000s, report labels struggled as they lost money to digital piracy – however streaming providers reminiscent of Spotify and Youtube have modified the sport, as shoppers are able to pay for entry to songs.

After the EMI acquisition, which noticed artists such because the Beatles, Katy Perry and Robbie Williams come underneath Universal’s umbrella, the company snapped up catalogues from a variety of different artists – and underneath Grainge’s watch, its worth has elevated from £4billion to £28billion.

Advertisement


Back to top button