Bill Ackman’s Pershing Square Proposes $64 Billion Takeover of Universal Music

Economy

Bill Ackman’s Pershing Square Proposes $64 Billion Takeover of Universal Music

2 hours ago

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Bill Ackman’s Pershing Square Proposes $64 Billion Takeover of Universal Music

Credited from: REUTERS

Bill Ackman's Pershing Square offers approximately $64 billion for Universal Music Group.
The deal would provide €9.4 billion in cash and shares to UMG shareholders.
The new entity aims to be listed on the New York Stock Exchange.

American hedge fund Pershing Square, led by Bill Ackman, proposed a takeover of Universal Music Group (UMG) valued at approximately $64.3 billion. The offer suggests a valuation of about 30.4 euros per share, significantly higher than UMG’s last closing price of 17.1 euros, indicating a potential premium of 78%. If successful, the transaction will position UMG shares in the American market, according to Reuters, BBC, and CBS News.

The acquisition involves a combination of €9.4 billion in cash and an offer of shares in the newly formed company, which would be positioned on the New York Stock Exchange. Ackman believes that UMG's stock has "languished due to a combination of issues unrelated to the performance of its music business," as evidenced by ongoing uncertainties regarding Bolloré Group's stake in UMG and a delayed U.S. listing, as noted by Reuters, BBC, and CBS News.

The merged entity would represent a roster including top artists such as Taylor Swift and Drake, all while addressing financial opportunities linked to UMG's balance sheet, which Ackman states has been underutilized. This strategic move is expected to proceed with hopes of finalizing the deal by the end of 2026, according to Reuters, BBC, and CBS News.