Bill Ackman, through his investment firm Pershing Square, has proposed a $64 billion takeover of Universal Music Group, marking one of the largest potential deals in the global entertainment industry.
The offer, which is non-binding, includes a mix of cash and shares and values Universal Music at approximately €30.40 per share, representing a premium of about 78% over its recent closing price.
Under the proposed structure, Universal Music would merge with Pershing Square’s acquisition vehicle, SPARC Holdings, and the combined entity would be listed on the New York Stock Exchange. This would involve a shift from the company’s current listing in Amsterdam.
Universal Music, which represents global artists including Taylor Swift, Kendrick Lamar and Billie Eilish, has confirmed that it has received the proposal and stated that its board will review the offer along with its advisers.
The proposal includes approximately €9.4 billion in cash along with shares in the new entity for existing shareholders.
Ackman has indicated that the transaction is aimed at addressing what he described as underperformance in Universal Music’s share price despite the company’s strong position in the global music market. The company’s stock has declined in recent months, with factors such as delayed plans for a US listing and shareholder structure cited as reasons.
The deal would require approval from Universal Music’s board, its shareholders and relevant regulatory authorities. Major stakeholders, including Bolloré Group, Vivendi and Tencent, are expected to play a key role in determining the outcome of the proposal.
If approved, the transaction could be completed by the end of the year.
Universal Music has stated that it will not provide further comments until its board completes the evaluation process.
