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Could Paris-based music company Believe be taken off the stock market and re-privatized?
according to Reutersis the largest shareholder of the company with which it conducts transactions. at paris euronext“exploring possibilities.”
MBW’s own sources confirmed that various discussions have taken place between the company and potential private investors in recent weeks.
Citing its own sources: Reuters It reported that Believe’s investors, including founder and CEO Denis Radegairelli, were “working with advisors” and were “encouraging interest” in a potential bid from the private equity industry. ing.
According to one of the external parties involved in these negotiations, Reutersis a private equity group EQT based in Sweden.
However, sources say EQT and Believe ended negotiations last month. Another potential investor, private equity firm Permira, is said to have ended talks in December.
This isn’t the first time EQT has expressed an interest in the music industry.
The company bought a 40% stake in Swedish royalty-free soundtrack provider Epidemic Sound in 2017 and participated in the company’s $450 million funding round in 2021, adding 14 shares to Epidemic. It was given a “Unicorn Plus” valuation of $1 billion.
In July 2022, EQT purchased a stake in talent agency UTA.
Pophouse Entertainment, which also runs London’s Avatar show ABBA Voyage, was co-founded by EQT chairman Connie Johnson. Pophouse also welcomes EQT executive Alexandra Lutz to its board of directors.
News of Believe’s possible take private comes less than three years after the company listed on Paris Euronext.
believe Officially listed on June 10, 2021, 300 million euros in the process.
According to Euronext/Cofisem, just under 20% of Believe was traded on stock exchanges as of September 2023 (see below).
As of September 2023, Believe’s largest shareholder is TCV Luxco. 41.28% It is owned by Denis Ladegaillerie, founder and CEO of the Believe music company. 12.51%.
It is owned by Ventech, another major shareholder. 16.92%.
Citing another source: Reuters reports that “although a deal may not materialize,” negotiations are “still ongoing.”
Believe’s current market capitalization is 911.6 million eurosis less than half the size of the music company’s peak valuation in November 2021, according to Euronext data.
Denis Radgailery himself 12.51% Believe’s shares were worth approximately 250 million euros as of November 2021 and are currently worth approximately 114 million euros.
At the time this article was published today (January 15), Believe stock was trading at . €9.42less than half of the IPO price of 19.50 euros on Thursday, June 10, 2021.
Believe announced its latest financial results for the third quarter of 2023 on October 24th.
Across Believe’s operations, the company 215 million euros ($234 million), represents the growth of 9.1% compared to the previous year.
On an intrinsic basis (equivalent boundaries and constant exchange rates), Believe’s revenue increased 7.5% compared to the previous year.
Believe divides its global operations into two segments.
- (i) DIY distributor tune core (called “Automated solution” result); similarly
- (ii) the performance of our core premium label and artist services operations (“ “Premium Solution”)
The company’s “premium solutions” revenue increased 10.1% compared to previous year – from 184.4 million euros Q3 2022 – ~ 202.9 million euros ($220.8 million) in the third quarter of 2023.
Meanwhile, Believe’s financial results showed that revenue generated by the company’s Automation Solutions division declined in the third quarter of 2023. 4.5% compared to previous year to 12.1 million euros ($13.16 million).
According to Believe, this decline was “mainly due to the dollar-to-euro depreciation of approximately -6%.”
He added: “Original growth was stable year-over-year as TuneCore also had difficult comparison criteria.”world music business
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