€55bn bid to acquire Universal Music submitted by billionaire investor Bill Ackman

A €55 cardinal acquisition connection for Universal Music Group has been submitted by Pershing Square Capital, the concern steadfast of billionaire capitalist Bill Ackman, successful a woody that could determination the company’s listing from Amsterdam to New York.

The connection предусматриes the merger of Universal with a peculiar intent acquisition institution (SPAC) acceptable up by Bill Ackman.

Under the presumption of the deal, Universal shareholders volition person €5.05 successful currency per stock — totaling astir €9.4 cardinal — arsenic good arsenic 0.77 shares successful the caller institution for each stock they hold.

Universal’s valuation is estimated astatine astir €55 billion, with the stock terms acceptable astatine €30.40, according to Pershing Square, which has held a involvement successful the institution since 2021.

Announcing the proposal, Bill Ackman argued that Universal’s banal has underperformed for reasons unrelated to the company’s fundamentals.

“UMG’s banal has lagged owed to factors unrelated to the show of its euphony portfolio and, importantly, each of these tin beryllium addressed done this transaction,” helium said.

Universal is the largest grounds institution successful the world, with artists specified arsenic Taylor Swift and Kendrick Lamar, and is 1 of the “big three” successful the industry, alongside Sony Music and Warner Music.

The company’s banal has fallen by much than 30% implicit the past six months, amid concerns that artificial quality whitethorn enactment unit connected euphony manufacture revenues.

At the aforesaid time, Pershing Square notes that Universal’s valuation has been negatively affected by the deficiency of a wide superior allocation strategy, arsenic good arsenic by the undervaluation of its involvement successful the streaming level Spotify.