French conglomerate Vivendi wants to sell up to half of its Universal Music Group holdings.
Universal, whose recording artists include Lady Gaga, Kendrick Lamar, U2 and The Rolling Stones among others, generated a +34% surge in revenues from subscription and streaming products during the first half of 2018.
Vivendi acquired Universal in 2006, and music streaming turned out to be one of its most profitable operations. It receives royalties when people stream songs on digital platforms. Universal Music Group has licensing agreements with Spotify, Tencent, YouTube, Apple, Amazon, and Facebook.
A strong streaming business makes Universal Music Group an attractive bid for buyers as Vivendi gears up to sell some of its stake.