Bill Ackman bids $64 billion for Universal Music Group

Bill Ackman’s Pershing Square connected Tuesday offered to get Universal Music Group successful a bid valuing the institution astatine astir $64 billion.

The connection would determination the world’s largest grounds statement from Amsterdam to the New York Stock Exchange, betting that U.S. markets would delegate a higher valuation to the institution down Taylor Swift, Drake, Kendrick Lamar and Bad Bunny.

The connection comes arsenic Universal’s shares person mislaid astir a 3rd of their worth since the company’s 2021 IPO, adjacent arsenic the planetary recorded-music marketplace has continued to grow.

Ackman argues the occupation lies little with the concern than with the stock.

“UMG’s banal terms has languished owed to a operation of issues that are unrelated to the show of its euphony business,” Ackman said Tuesday, “and importantly, each of them tin beryllium addressed with this transaction.”

His connection would springiness Universal shareholders €9.4 cardinal (around $11 billion) currency positive 0.77 shares successful a recently listed U.S. institution for each stock they own, implying a worth of astir €30.40 (around $35) a share, a 78% premium to wherever the banal closed past week.

The activistic capitalist is proposing a analyzable transaction that would merge Universal with Pershing Square SPARC Holdings, his acquisition vehicle. The program besides calls for a reworked equilibrium expanse and a caller committee led by erstwhile Hollywood superagent and Disney president Michael Ovitz, portion keeping Chief Executive Lucian Grainge successful place.

Universal Music Group and Vivendi didn’t instantly respond to requests for comment. A spokesperson from Pershing Square declined to remark beyond the firm’s nationalist materials.

Any woody faces a formidable obstacle: Vincent Bolloré.

The 74-year-old French billionaire’s Bolloré Group owns 18.5% of Universal straight and has further vulnerability done Vivendi, which holds 13.4%. Through those stakes, Bolloré commands a ample bulk of Universal’s voting rights, much than is required to o.k. the deal.

Ackman’s pursuit of Universal has been years successful the making. In 2021, helium announced plans to bargain a 10% involvement done a SPAC, but the effort ran into absorption from regulators and shareholders. He yet bought the involvement done his hedge money instead.

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Ackman joined Universal’s committee successful 2022 and stepped down successful 2025. More recently, Universal delayed its long-planned U.S. listing due to the fact that of marketplace conditions, a setback that appeared to fortify Ackman’s statement that a broader transaction mightiness beryllium the cleaner route.

Universal shares roseate arsenic overmuch arsenic 13% connected Tuesday earlier paring gains to commercialized astir 10% higher, inactive good beneath Pershing’s projected valuation. Vivendi and Bolloré Group shares besides moved higher.