Pershing Square, led by activist investor Bill Ackman, has offered to acquire Universal Music Group (UMG) in a cash-and-shares deal valued at approximately $64.31 billion (€55.75 billion), based on coverage from three major outlets.
Key Takeaways
Pershing Square has offered to acquire Universal Music Group for $64.31 billion in cash and shares, aiming to list the merged company on the NYSE by 2026. The deal values UMG at €55.75 billion, a significant premium over its current stock price.
The offer includes €9.4 billion ($10.9 billion) in cash plus 0.77 shares in the new entity for each UMG share, according to CBS News. The merged company would be listed on the New York Stock Exchange and boast a roster of top artists including Taylor Swift, The Weeknd, Lady Gaga, Billie Eilish, and Drake.
Ackman stated that UMG's stock price has been undervalued due to factors unrelated to its music business performance. These include uncertainty around French conglomerate Bollore's 18% stake in Universal and delays in listing on the U.S. stock market, as reported by CBS News. The deal aims to close by the end of 2026.
The offer values UMG at around €30.40 per share, a 78% premium over its last closing price of €17.10, according to Reuters. Pershing Square already owns a stake in Universal and has holdings in companies like Google, Meta, Amazon, Uber, and Restaurant Brands International.
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