Bill Ackman is taking another big swing at the music business. His Pershing Square investment firm has put forward a cash-and-stock proposal to buy Universal Music Group, the powerhouse label behind Taylor Swift and Bad Bunny, in a deal that values the company at about $64 billion. The offer would fold UMG into a Pershing Square backed vehicle and shift its main stock listing to the United States, a move that instantly shook markets and reignited debate over where global music giants ought to trade.
Under the proposal, current UMG investors would receive €5.05 in cash plus 0.77 shares of a newly formed company for each UMG share they hold. Pershing Square pegs that package at €30.40 per share, or roughly $35.12, implying a total deal value of about €55.8 billion, close to $64 billion, according to The Associated Press. The firm says the cash portion would run to around €9.4 billion, and that the transaction is structured as a merger with Pershing Square SPARC Holdings.
Deal mechanics and corporate plan
Pershing Square wants to combine UMG with Pershing Square SPARC Holdings and reincorporate the merged company in Nevada, with a primary listing on the New York Stock Exchange, as reported by Music Business Worldwide. The reworked "New UMG" would report its numbers under U.S. GAAP and, in Ackman’s telling, qualify for inclusion in major American stock indexes. Pershing Square says the deal would cancel roughly 17% of UMG’s outstanding shares while keeping an investment grade balance sheet in place, with equity financing backstopped and debt financing committed at the time of signing.
Ackman’s pitch and the backstory
Ackman is pitching the whole thing as a value rescue mission. "UMG's stock price has languished," he argued, insisting that a U.S. listing and sharper capital allocation plans could unlock value for investors, according to Music Business Worldwide. Pershing Square ticked off a list of factors it says have weighed on UMG’s valuation, including uncertainty around the Bolloré Group’s stake, the delayed move to a U.S. listing and what the firm describes as less than ideal investor communications. Ackman has history here: he previously tried to take a stake in UMG via a SPAC in 2021, a bid that ultimately fizzled but set the stage for this latest overture.
Obstacles and approvals
For now, the offer is nonbinding. It still needs signoff from UMG’s board, its shareholders and regulators in multiple jurisdictions, and Pershing Square says that, if everything breaks its way, the deal could close by year-end, according to The Associated Press. Universal did not immediately respond publicly to the approach. Any formal talks would likely feature tough questions from major stakeholders and from officials who oversee cross-border listings and corporate governance.
Market reaction and what it means for artists
Traders did not wait to register a view. UMG shares opened sharply higher, with El País reporting an early surge of about 28% before the stock’s gain cooled to roughly 12% a couple of hours into Amsterdam trading. The rapid repricing underscored how listing venue and investor base can influence the market tag on companies that straddle culture and high finance.
If Pershing Square pulls this off, it would rank among the biggest music industry takeovers in recent decades and put Ackman in a commanding position at the world’s largest record label. For now it is all still on the table rather than a done deal, with UMG’s board and regulators holding the next moves in what could become one of the year’s most watched corporate dramas in music.
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