Billionaire financier Bill Ackman and his investment firm, Pershing Square, offered to buy Universal Music Group Tuesday, the largest music company in the world that represents global stars like Taylor Swift, Drake and Adele.
The offer, announced in a letter to UMG’s board of directors, would see the company merge with Pershing Square’s acquisition vehicle and relocate its stock listing from Amsterdam to New York, a change Ackman, who publicly supported and endorsed President Donald Trump in the 2024 election, has previously advocated.
Under the terms of the proposal, UMG shareholders would get €5.05 in cash and 0.77 shares in a new version of the company for each UMG share they own. Altogether, this adds up to about €30.40 per share, which is 78 percent more than the stock was recently worth. The deal would be fully funded by Pershing Square, and the new combined company would be based in Nevada and trade on the New York Stock Exchange.
Ackman acknowledged the strong performance of UMG’s management and its roster of globally successful artists in a statement, but argued that the company’s share price has not reflected its underlying business strength.
“Since UMG’s listing, Sir Lucian Grainge [CEO of Universal Music Group] 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.”
Factors holding down the stock’s valuation include uncertainty over major shareholder stakes, a delayed U.S. listing and perceived underutilization of the company’s balance sheet and assets, and “the lack of investor credit in UMG’s valuation for its €2.7 billion stake in Spotify,” among other factors, according to the proposal.
If completed, the transaction would cancel about 17 percent of UMG’s outstanding shares while preserving the company’s investment‑grade balance sheet, Pershing Square said. The new entity is expected to publish financial statements under U.S. accounting standards and become eligible for inclusion in major U.S. indexes, such as the S&P 500. Pershing Square also scheduled an investor webcast for Tuesday to discuss the proposal and address shareholders' questions.
News of the proposal sent UMG’s stock price sharply higher Tuesday, with shares jumping more than 10 percent in trading as investors reacted to the premium offer and potential strategic shift, The New York Times reports.
A spokesman for UMG declined the Times’ request for comment. The Independent has reached out to UMG for a statement.
Ackman, a hedge fund manager who had previously supported Democrats, became a vocal Trump supporter during the 2024 election. He said he no longer felt the Democratic Party reflected his values and called Trump the "most pro-business president we’ve ever had."
His endorsement came after the first assassination attempt on Trump in 2024, after which Ackman posted a lengthy explanation of his decision on X.
“Today, when one announces an intention to support Trump, Biden supporters who know me tend to assume that I have lost it,” he wrote. “I assure you that I have made this decision carefully, rationally, and by relying on as much empirical data as possible."
He urged his followers to “keep an open mind” ahead of the election, telling his followers that “your views on Trump have likely been dramatically affected if you have sourced your info on Trump from mainstream media or friends or family who have relied on mainstream media as a source of knowledge.”
He added: “We have all recently learned in the starkest manner (the debate) how we cannot rely on the MSM as our source of truth on the ultimate political question.
He has, however, criticized specific policies since, such as the tariffs, which he described as "bad math" and potentially harmful to the economy.
You’re losing money by not shopping around for car insurance. Experts reveal how much
Americans want to save another $200K in order to retire comfortably
Trump promises to ‘bring Iran back to Stone Ages’
Trader Joe’s set to open new stores across 12 states: Here’s the full list
How hosting the NFL Draft has long boosted a city’s market value
Pepsi was warned $7 for Doritos was too much. Now they are paying the price
