Billionaire Bill Ackman’s Pershing Square Offers To Purchase Universal Music Group

Universal Music Group (UMG) shares surged early Tuesday after Bill Ackman's Pershing Square offered to acquire the company in a transaction valued at approximately $64 billion. UMG's shares rose nearly 10% following the announcement. The proposed deal would merge UMG with Pershing Square's Spark Holdings and move UMG's primary stock listing from Amsterdam to the New York Stock Exchange. Ackman stated his belief that UMG's stock price has been hampered by factors unrelated to its music business performance. These include the postponement of UMG's New York listing, uncertainty surrounding billionaire Vincent Bellore's 18% stake, underutilization of its balance sheet, and suboptimal investor relations. The cash component of the transaction would be funded by $2.9 billion from Pershing Square, debt financing, and the sale of UMG's Spotify stake. Ackman had previously shown interest in UMG in 2021 but abandoned a SPAC deal due to regulatory pushback. He subsequently purchased a 10% stake through Pershing Square and served on UMG's board until 2025. While on the board, Ackman advocated for a New York listing, arguing in 2024 that UMG traded at a significant discount with limited liquidity partly due to its lack of a U.S. primary listing. He noted that UMG's shares are down 39% from their peak two years ago, trading near an all-time low.