NEW YORK — Bill Ackman's Pershing Square Capital Management proposed on Tuesday a roughly $64 billion cash-and-stock deal to acquire Universal Music Group, the world's largest music company.
The non-binding offer, submitted to Universal Music Group's board, would merge the Amsterdam-listed company with Pershing Square SPARC Holdings, a special-purpose acquisition vehicle, and move its primary listing to New York, according to a Pershing Square statement.
The proposal values Universal Music Group at about 30.40 euros ($35.13) per share, representing a 78% premium to its last closing price of 17.10 euros, for a total equity value of approximately 55.75 billion euros ($64.31 billion), Reuters calculations showed. The cash portion of the transaction totals about 9.4 billion euros.
Universal Music Group, home to artists including Taylor Swift, Drake, Kendrick Lamar and Bad Bunny, is majority-owned by French conglomerate Vivendi. Its shares rose sharply on Tuesday following the announcement.
In a statement accompanying the proposal, Pershing Square Chief Executive Officer Bill Ackman said the deal aims to address factors he believes have weighed on the company's stock price despite strong operational performance.
“Since UMG’s listing, Sir Lucian Grainge and the company’s management have done an excellent job nurturing and continuing to build a world-class artist roster and generating strong business performance,” Ackman said. “However, UMG's stock price has languished due to a combination of issues that are unrelated to the performance of its music business and importantly, all of them can be addressed with this transaction.”
Pershing Square already holds a significant stake in Universal Music Group. The activist investor has argued that a U.S. listing and associated structural changes could unlock greater value for shareholders.
The proposed transaction would require approval from Universal Music Group shareholders and its board, as well as regulatory clearances in multiple jurisdictions. Details on financing, including the exact mix of cash and shares and any debt component, were not fully disclosed in initial announcements.
Universal Music Group has not yet issued a public response to the proposal. The company, which generates revenue from recorded music, publishing and merchandising, reported strong growth in recent years under CEO Lucian Grainge.
Pershing Square described the offer alongside a “value creation plan” intended to deliver benefits to stakeholders, though specific elements of the plan were not detailed in public statements. The fund indicated it expects the complex transaction could close by the end of the year, subject to approvals.
The development comes after Universal Music Group delayed earlier plans for a U.S. listing. No further immediate timeline for board deliberations was provided by either party.
As of Tuesday evening, Universal Music Group had not confirmed receipt of the offer or outlined next steps. Pershing Square said the proposal remains subject to negotiation and due diligence.
