Universal Music Group shares tumble 25% as subscription revenue slows
Business
Universal Music Group (UMG), home to artists like Taylor Swift and BTS, just saw its shares tumble 25%, wiping out about €8.8 billion in value.
The big drop happened after UMG's latest results showed subscription revenue growth slowing to 6.7%, down from 7.9% last quarter, making investors pretty nervous.
UMG rejected $64bn buyout, Vivendi slides
UMG's worth is all about getting more paid subscribers and raising prices, so any slowdown hits hard, even though they turned down a $64 billion buyout two months ago.
The shock also hit Vivendi, one of UMG's largest shareholders, whose stock fell 18%.
Analysts say that while some losses hurt now, stronger music releases later this year could help turn things around.