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TieveCore owner Believe aims to raise € 500 million when the IPO process begins in France

Have you heard about the big bucks new IPO that is making waves in the music industry?

No, not Universal Music Group (which will go public in Amsterdam in the coming months).

We’re talking about Believe, headquartered in Paris, which confirmed today (May 10th) that it has taken the first official step to float in its homeland.

Like UMG, Believe has chosen Europe for its arrival on the stock exchange: the French company has just published its registration document on the Paris Euronext approved by the French Autorité des Marchés Financiers (AMF).

As part of the planned IPO, Believe, a label and artist services company and owner of TuneCore, intends to raise around 500 million euros to finance its growth strategy.

In a press release published today, Believe confirmed that it is a “fast growing and profitable company” with digital sales of EUR 728 million in 2020 and consolidated sales of EUR 441 million in the same year.

French newspaper Le Monde suggested last year that Believe IPO would value the company at around € 2 billion ($ 2.4 billion).

The completion of Believe’s initial public offering is now subject to AMF approval of the prospectus and “favorable market conditions”.

Denis Ladegaillerie, Founder and CEO of Believe, said, “Over the past decade, streaming has changed the way people discover music and paved the way for independent artists and labels to rise.

“At the core of this transformation, Believe is ideally positioned with a unique model to provide solutions that are best tailored to the changing needs of every independent artist and label at all levels of development in the digital world. Believe has the technology platform, global reach, and local people to be at the forefront of this new cycle.

“This IPO project would allow us to accelerate our development and continue our profitable growth path while at the same time fulfilling our mission to create a better, more diverse, more respectful, transparent and fairer future for all artists.”

Denis Ladegaillerie, do you think?

“Believe’s CSR strategy, which focuses on respectful, fair and transparent talent development, is at the heart of our efforts to become the best and most value-adding partner for artists and labels in the digital world.

“This IPO project would allow us to accelerate our development and continue our profitable growth path while at the same time fulfilling our mission to create a better, more diverse, more respectful, transparent and fairer future for all artists.”

Citi, JP Morgan and Société Générale are acting as both joint global coordinators and joint bookrunners for the proposed IPO, while BNP Paribas, Goldman Sachs, HSBC and UBS are acting as joint bookrunners.

Rothschild & Co. is acting as the independent financial advisor to Believe.

Believe was founded in 2005 by ex-Vivendi manager Denis Ladegaillerie.

As of December 31, 2020, Believe was operating in more than 50 countries with 1,270 employees, delivering solutions for more than 850,000 artists (directly or via their labels) who represented more than 100 billion Spotify streams and 375 billion YouTube views in 2020 .

Believe announced today that digital music (DMS) sales increased by over 54% in 2018-2020 (from EUR 472 million to EUR 728 million). This equates to an average annual growth rate (CAGR) of 24% versus a CAGR of 7.6% for the recorded music market.

In the first quarter of 2021, Believe had consolidated sales of € 124 million, an increase of 26% compared to the first quarter of 2020 or an increase of 23% at current exchange rates.

In 2020, 18% of consolidated sales were achieved in France, 22% in Germany, 28% throughout Europe, 14% in America and 18% in Asia, Oceania and Africa.

Believe is known as the parent company of TuneCore, which the company now pays indie artists more than $ 400 million every 12 months, according to the company.

Outside of TuneCore, Believe also owns in-house labels including All Points, Naïve and Nuclear Blast.

In June 2015, TCV – an investor in Spotify – announced that it had made a $ 60 million investment in Believe.

Le Monde reported last year that TCV 2020 had a 49% stake in Believe.Music business worldwide

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