Vivendi (VIV.FR) shares surged more than 20% after the French media conglomerate announced plans to list Universal Music Group on the Netherlands stock exchange and distribute 60% of the capital to investors by year end.
This move would provide UMG, which is the world’s biggest music company that represents popular stars like Lady Gaga, Taylor Swift, and Kanye West, with funds that will allow it to compete with rivals Warner Music Group and Sony Music Entertainment amid a boom in music streaming services like Spotify and Apple Music, as well as social apps like TikTok and Instagram, which license songs to be used in posts by their users. Shareholders will be asked to approve the plan at a meeting on March 29.
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Vivendi (VIV.FR) stock launched today's session with a massive bullish price gap however, buyers failed to break above the resistance at € 26.71 where 2007 highs are located and price pulled back. Nearest support lies at the upper limit of the ascending channel. However, if buyers will manage to regain control and break above the aforementioned resistance, the upward move may be resumed. Next resistance is located at €35.37 level. Source: xStation5
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