News
Bill Ackman · M&A · Music Industry · Universal Music Group
Activist investor Bill Ackman's Pershing Square Capital Management offers to acquire Universal Music Group, the music label for artists like Taylor Swift and Bad Bunny, in a cash-and-stock transaction valued at approximately $64 billion, aiming to merge it with Pershing Square SPARC Holdings.
The proposed deal values Universal Music at 30.40 euros per share, or $35.12, totaling approximately 56 billion euros based on its outstanding shares. Universal Music shareholders will receive 9.4 billion euros in cash (5.05 euros per share) and 0.77 shares of the newly created company's stock for each share owned.
Ackman stated the transaction addresses issues unrelated to Universal Music's music business performance that have caused its stock price to languish. The new company will be based in Nevada and move its stock listing from Amsterdam to the New York Stock Exchange.
Pershing Square anticipates the transaction will close by the end of the year. This marks Ackman's renewed interest after a 2021 attempt for a 10% stake failed due to Securities and Exchange Commission (SEC) concerns regarding the structure of a special-purpose acquisition company.
Shares of Universal Music rose more than 10% in midday trading in Amsterdam following the announcement.
