Lucian Grainge is staying put.
The British executive has signed a new five-year deal as Chairman and CEO of Universal Music Group.
According to parent Vivendi, the contract sees him commit to UMG ‘until at least 2020’.
Grainge’s new deal comes as part of what Vivendi calls a ‘five-year development plan with the senior management of Universal Music Group (UMG).
The French giant says this will include:
- ‘Accelerating the monetization of UMG’s music on digital channels’;
- ‘Broadening the reach of its audio and visual content through multiple partnerships with platforms’;
- ‘Strengthening its strategic relationships with brands and sponsors’;
- ‘Pursuing its ‘industry-leading’ track record of talent management and development’;
- ‘Continuing to invest in high-potential markets for music, such as Africa, India and China.’
Present in over 60 countries and owning a portfolio of 50 labels, UMG has an annual turnover of nearly 5 billion euros and employs over 7,000 people.
After joining UMG in 1986 to launch PolyGram Music Publishing UK, Lucian Grainge held the positions of Chairman of Universal Music UK and Chairman and Chief Executive Officer of Universal Music Group International.
As Chairman and CEO of UMG, Grainge has seen annual revenue grow from €4.44bn in 2010 to €4.55bn in 2014.
Digital recorded music revenue grew from €1.03bn in 2010 to €1.64bn in 2014.
EBITDA has grown from €571 in 2010 to €688 in 2014.
EBITDA Margin improved from 12.8% in FY 2010 to 15.1% in FY 2014.
In some circles, Grainge is best-known for spearheading UMG’s acquisition of EMI (£1.2bn) and then selling Parlophone Label Group to WMG for £487m.
He also masterminded the purchase of a 14% stake in Beats, the company which was later sold to Apple for $3bn. UMG netted over $400m as part of the deal.
Other highlights include signing a global partnership with Jay Z’s Roc Nation (2013), a distribution deal with Glassnote Entertainment Group (2014) and the acquisition of Eagle Rock Entertainment (2014).Music Business Worldwide