Pershing Square’s $64B Takeover Bid for Universal Music Group
Bill Ackman’s Pershing Square Capital Management, led by the renowned activist investor, unveiled a colossal $64.4 billion takeover bid for Universal Music Group on Tuesday. Universal Music is the home of international music sensations such as Taylor Swift, Drake, and Billie Eilish.
The proposed cash-and-stock deal would see Universal Music shareholders receiving $10.85 billion in cash and 0.77 shares of the new company for each UMG share they hold. This offer places the value of each share at €30.40, which is a 78% premium over the April 2 closing price of €17.10. The merger with Pershing Square SPARC Holdings would result in the newly formed entity listing on the New York Stock Exchange, a shift from its current Amsterdam listing.
Ackman commended UMG CEO Sir Lucian Grainge for his performance, but highlighted that the stock has “languished” due to factors unrelated to the music business itself. These factors include uncertainty surrounding Bolloré Group’s 18% stake and the delay of a U.S. listing. The proposal also suggests a board refresh, with legendary entertainment executive Michael Ovitz proposed as chairman. Pershing Square, a major UMG investor since 2021, currently holds more than 4.5% of shares. The announcement of the proposal saw Universal Music shares surge by 11%.
Source: CNBC