MI363: Valuing Universal Music Group w/ Shawn O'Malley

In today’s episode, Shawn O’Malley (@Shawn_OMalley_) breaks down Universal Music Group’s stock and what the music industry looks like from music labels’ perspective. You’ll learn why Universal Music Group is a more reliable bet on the music industry than Spotify, why music labels have such compelling economics, Bill Ackman’s rationale for owning Universal, how AI could impact the music industry, and whether Universal is currently undervalued, fairly valued, or overvalued, plus so much more! IN THIS EPISODE, YOU’LL LEARN 00:00 - Intro 00:19 - Why Universal is a more reliable bet on the music industry than Spotify 03:44 - How streaming has increased the value of music rights 05:16 - What music labels do for artists 06:40 - What Universal’s advantage is as the largest global music label 07:44 -How Universal’s revenue streams breakdown 12:45 - Why Universal’s business is like selling shovels in a gold rush 18:30 - Why big stars still need music labels 18:50 - How Universal split off from Vivendi 20:40 - The risks from AI and Bill Ackman’s thoughts on AI 25:24 - What happened during Universal’s feud with TikTok 28:00 - What Universal’s health and wellness ambitions are for music 30:29 - Which challenges could hinder Universal the most 35:02 - How to value Universal like Bill Ackman  And much, much more! *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members. Bill Ackman’s presentation on Universal stock. Music Streaming Royalties 101 article. Check out the books mentioned in the podcast here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Check out our Millennial Investing Starter Packs. Browse through all our episodes (complete with transcripts) here. Try Kyle's favorite tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Range Rover Toyota Airbnb Found Public Facet Fundrise Airbnb NetSuite Connect with Shawn: Twitter | LinkedIn | Email Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm