Universal Music soars after going public — and TikTok tunes could be its new growth engine

Sound on… Universal Music Group’s stock soared ~40% yesterday after dropping on an Amsterdam stock exchange, giving the world’s largest record label a $53B market cap. UMG represents stars like Taylor Swift, Justin Bieber, Billie Eilish and The Beatles. Now, it’s benefiting from the streaming revival of the music industry.

YouTube to MP3 download… The rise of streamers like Spotify and Apple reversed the music industry’s 15-year, LimeWire-powered decline. Since 2016, record labels’ sales have increased every year. Last year, streaming accounted for 83% of $12B total US music sales. But the “Big 3” record labels — Universal, Sony, and Warner — were privately owned until recently.

• Hot single: Warner Music went public last summer on the Nasdaq, but only listed 14% of its shares. Since then, its market cap has nearly doubled to $23B.
• Whole album: Universal Music listed 60% of its shares. Gaming giant Tencent — which licenses tunes for games —already owned a 20% stake.
• Still in the studio: Sony Music, valued at an estimated $62B, is still only accessible to investors as part of wider conglomerate Sony Group.