Bill Ackman Goes Big: Pershing Square Bids $64B for Universal Music Group

TLDR

• Bill Ackman’s Pershing Square proposed merging its SPARC Holdings vehicle with Universal Music Group in a non-binding $64 billion deal.
• The offer values UMG at €30.40 per share — a 78% premium to its last close of €17.10.
• UMG stock jumped ~13% on the news; top shareholder Bollore Group rose ~6%.
• The new entity, dubbed “Nevada Corporation,” would list on the New York Stock Exchange.
• Former Disney president Michael Ovitz would join as board chairman under the proposed deal.

Bill Ackman’s Pershing Square has put a $64 billion offer on the table for Universal Music Group, proposing to merge its SPARC Holdings acquisition vehicle with the Amsterdam-listed label in a deal that would bring UMG to Wall Street.

The cash-and-stock offer values UMG at €30.40 per share — a 78% premium to its last close of €17.10. UMG stock jumped around 13% in early Tuesday trading. Bollore Group, UMG’s largest shareholder, also saw its stock rise roughly 6%.

UMG did not immediately respond to a request for comment.

The proposal is non-binding. Under the terms, UMG shareholders would receive €9.4 billion in cash plus 0.77 shares in the new Nevada Corporation for every UMG share held.

Pershing plans to fund the cash portion through SPARC’s rights holders, debt financing, and proceeds from its stake in Spotify.

The new combined entity — Nevada Corporation — would be listed on the New York Stock Exchange, giving UMG the U.S. presence Ackman has long pushed for.

Why Ackman Is Pushing This Deal

In a letter to UMG’s board, Ackman acknowledged the company’s management had done an “excellent” job running the business. But he pointed to a sluggish stock price since UMG’s 2021 Amsterdam listing as the core problem.

Ackman cited three specific issues: uncertainty around Bollore Group’s 18% stake, the delay to UMG’s planned U.S. listing, and what he called underutilisation of UMG’s balance sheet.

Last month, UMG walked back a prior agreement with Pershing to pursue a U.S. listing — a move that appeared to accelerate Tuesday’s merger proposal.

Pershing holds a 4.7% stake in UMG, making it the fourth-largest shareholder, according to LSEG data.

Key Players Yet to Respond

Bollore Group, which owns 18% of UMG, did not comment. Vivendi, the second-largest shareholder, also declined to respond. Tencent Holdings, UMG’s third-biggest shareholder, did not immediately reply.

Their positions will matter. Any deal of this size needs broad shareholder support to move forward.

Talent agent and former Walt Disney Company president Michael Ovitz is set to join the UMG board as chairman if the deal closes.

Pershing Square said it expects the transaction to close by the end of 2026.

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