- Deutsche Bank (DE:DBKGn) has significantly raised its valuation of Vivendi (PA:VIV)'s (VIVHY +1.7%) Universal Music Group, to €29B from a previous €20B.
- That's notable since it's higher than the market capitalization of the parent company -- currently at €28.3B.
- "With the hype around UMG stake sale having subsided, there is now scope for valuation to surprise to the upside in 2H 2019," Deutsche Bank says. The bank sees music streaming revenue growing to $21B in 2023 from $7B last year in trade dollars
- It also sees a number of potential partners in a UMG stake sale, notably Liberty Media (NASDAQ:FWONA), which controls Sirius XM (NASDAQ:SIRI); Tencent Music (NYSE:TME) or Tencent (OTCPK:TCEHY), the latter of which has more cash to deploy for such a deal; and others including Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Spotify, Apple (NASDAQ:AAPL) or Alibaba (NYSE:BABA).
- Now read: Tencent Music: Overvalued Compared To Other Streamers
Original article