By Mariapaula Gonzalez

Universal Music Group is tapping into Wall Street.

The Netherlands-based music conglomerate filed Monday for a public offering in the U.S., marking the record company's secondary listing. The company has been listed on the Euronext Amsterdam exchange since 2021.

The stock has climbed 3.2% since UMG announced its public offering plan, with shares up around 13% this year.

Having shares traded on a U.S. exchange won't affect business operations, but it could bump up the stock by attracting more investors, says Matthew Dolgin, senior equity analyst at Morningstar.

"The best company in this industry has closed itself off to some investors in the U.S.," he told Barron's. "It brings the company the attention of more people and the potential ownership of more people who might want to own a company in this really good industry."

A potential stock bump is also attributable to UMG's scale in the music industry. The record company makes up nearly 34% of the global recorded music market. In 2024, UMG also amassed about 52% of its recorded music revenue in North America.

Larry Miller, director of NYU Steinhardt's music business program, says the company could see a boost in valuation of nearly 10% after it lists in the U.S., which would increase UMG's worth from about 50 to 55 billion euros ($58.6 billion to $68 billion).

Unlocking more capital also aligns with UMG's recent growth development, know as its "Streaming 2.0" plan that the company announced in January with Spotify. The strategy includes acquiring more independent labels in regions across the globe with potential streaming growth, buying more song catalogs from individual artists and increasing subscription prices on streaming platforms. Current artists signed under UMG include Taylor Swift, Lady Gaga and Billie Eilish.

Money from song catalogs and streaming make up a huge chunk of revenue for major music groups. In 2024, catalog sales accounted for 66% of UMG's recorded music digital and physical revenue. Music streaming services amassed over 60% of the company's total sales.

Despite rapid growth in the music industry, subscriber count has plateaued: the number of Spotify global premium subscribers increased 12% from last year to this year's first quarter. A year ago, that increase was 14% from 2023. "In established markets like the U.S. and the U.K., we're reaching a saturation point for just how much we can expect subscriptions to grow," says Tatiana Cirisano, vice president of music strategy at analytics firm MiDIA Research.

Looking forward, major music groups are eyeing countries outside of the U.S. -- like Latin America and Asia Pacific -- as areas for potential subscription growth. This venture, however, comes with risks. Not only are these markets where the average revenue per user is lower, but these are also regions where the Western major labels, including Universal, don't own as much catalog. With a new IPO listing and more investment, UMG could speed up this expansion.

Investor interest in the music industry sparked during the pandemic, as people at home began to value music as a constant in their lives. As movie theaters and restaurants saw a drop in foot traffic, music became a stable source of revenue. Prior to streaming, the initial purchases of CDs became the primary use of measuring the industry's performance. Now, streaming data makes it easier to predict growth, attracting investors.

With more capital and investor influence, UMG could continue to prioritize more catalog acquisitions as opposed to investing in new talent, which is a riskier long-term investment for record labels.

"They're artist-first, but they're also music-rights first," Chris Wares, assistant chair of the music business/management department at Berklee College of Music, said. "So it's going to be interesting to see what happens when there's more investment and more access to funds."

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July 25, 2025 12:24 ET (16:24 GMT)

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