Universal Music Group ’s market debut has been a smash hit. Investors’ clamor for all things musical is understandable, but risks drowning out unresolved tensions in the industry’s revival.
Shares in the record label behind the Beatles and Lady Gaga rose 38% in their initial public offering Tuesday. Universal was spun out by its former French owner Vivendi , with 60% of its shares listed on the Amsterdam stock exchange. The first-day pop valued the company at approximately €46 billion, equivalent to $54 billion—well above the roughly $40 billion Universal fetched just three months ago, when activist investor William Ackman bought a 10% stake.