UK music mogul Sir Lucian Grainge is about for a £100m windfall as Common floats in Amsterdam
The British boss of Common Music Group is about to scoop a bonus value greater than £100million as the corporate floats on the inventory market.
Music mogul Sir Lucian Grainge will rake in round £104million if he pulls off the itemizing in Amsterdam this month, based on paperwork printed yesterday.
That is on high of a pay package deal value as much as £30.4million.
Excessive notes: Sir Lucian Grainge (pictured with singer Taylor Swift) will rake in round £104m if he pulls off the itemizing in Amsterdam. That is on high of a pay package deal value as much as £30.4m
Grainge was handed £15m final February after orchestrating the sale of 20 per cent of Common to a bunch of buyers led by Chinese language web large Tencent, and is about to pocket an analogous bonus this month after promoting 10 per cent to Pershing Sq., the hedge fund led by US billionaire Invoice Ackman.
And he’ll profit from a long-term incentive plan, which the corporate has but to resolve. Common additionally revealed that Grainge is ‘entitled to the usage of a automotive, with a driver, for enterprise and cheap non-public use’.
The investor prospectus added: ‘Sir Lucian is supplied with the usage of a chartered or non-public plane for enterprise functions, topic to requiring prior approval for any such utilization in extra of €410,000 each year.’
Grainge, 61, has spent his total profession within the music trade, working with stars from Amy Winehouse to the Rolling Stones.
He joined Common in 1986 and helped launch file label Polygram, which turned one of many UK’s high three music publishers in simply 5 years.
By 2011, the Londoner who now lives in Los Angeles together with his spouse Caroline, had labored his approach as much as changing into the chairman and chief govt.
In his first yr in cost, he orchestrated the rescue of beleaguered music large EMI following its bruising interval beneath the possession of personal fairness agency Terra Firma.
Now Common, whose roots hint again to 1934, takes care of music from the likes of Taylor Swift, Billie Eilish and Take That.
The corporate, which has been majority-owned by French media large Vivendi since 2000, is about to drift in Amsterdam subsequent week with an estimated worth of £28billion.
Vivendi’s main shareholder, Vincent Bollore, can be left holding round £5billion value of Common inventory, because it arms out round 60 per cent of Common’s shares to its personal buyers.
Vivendi has been beneath strain to spin out Common for a number of years, as analysts stated the music enterprise was value greater than Vivendi’s share value implied.
The preliminary public providing (IPO) has now ignited hypothesis about what Bollore, and Vivendi, will do with the windfall.
The deal will even signify a wholesome payday for Pershing Sq., whose 10 per cent stake in Common can be value round £2.8billion. The consortium led by Tencent will hold its 20 per cent stake value £5.6billion.
Final yr, Common raked in revenues of £6.3billion, and made a revenue of £1.2billion.
It now makes its cash from royalty sources together with digital downloads and streaming, gross sales of CDs or vinyl data, dwell performances and the usage of its music on TV exhibits or adverts.
Within the early 2000s, file labels struggled as they misplaced cash to digital piracy – however streaming providers reminiscent of Spotify and Youtube have modified the sport, as shoppers are able to pay for entry to songs.
After the EMI acquisition, which noticed artists such because the Beatles, Katy Perry and Robbie Williams come beneath Common’s umbrella, the corporate snapped up catalogues from a variety of different artists – and beneath Grainge’s watch, its worth has elevated from £4billion to £28billion.