Bill Ackman’s Pershing Square proposes $64bn takeover of Universal Music
Pershing Square has made $64.4bn offer to acquire Universal Music Group in cash and stock transaction
Bill Ackman’s Pershing Square has put in an offer to acquire Universal Music Group (UMG) with a mix of cash and stock totaling $64.4 billion.
Under the proposed offer, shareholders would receive $10.85 billion in cash plus 0.77 shares of the new company's stock for each UMG share they own.
In a release this morning, Ackman lauded the success of Universal under the leadership of CEO Lucian Grainge, but noted that the company has "struggled" in recent years.
“Since UMG went public, Sir Lucian Grainge alongside the company's team have excelled in fostering a top-tier lineup of artists and driving impressive business results,” he remarked.
“Nonetheless, UMG's stock value has been hindered by issues not linked to its musical performance. Fortunately, this transaction can resolve all of them.”
Since 2021, UMG has been listed in Amsterdam. According to CNBC reports, its stock value has decreased by 23% this year.
Ackman attributed the weak performance partly to delays in listing UMG on the US market.
Ackman established Pershing Square in 2004. The fund purchased a 10% interest in UMG in 2021.
Universal Music has yet to make a statement. The label represents artists like Taylor Swift, Drake, and Kendrick Lamar.