Pershing Square Offers $64.4B Takeover of Universal Music
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- Pershing Square proposed acquiring UMG for ~€55.8 billion ($64.4 billion), offering €9.4 billion ($10.85 billion) in cash plus 0.77 new shares per UMG share — a total of €30.4 per share, a 78% premium to the April 2 closing price.
- UMG shares jumped about 11% on Tuesday but remain down roughly 14% year-to-date, according to the report.
- Bill Ackman blamed UMG's underperformance on the overhang from Bollore's 18% stake, the postponed U.S. listing, and "suboptimal" shareholder communications — all issues he said the transaction would resolve.
- UMG's board confirmed receiving the unsolicited, non-binding proposal and said it would review implications for shareholders, employees, and artists while expressing "complete confidence" in CEO Sir Lucian Grainge and current management.
- The deal would merge UMG with a Pershing Square vehicle and relist on the NYSE by year-end; Pershing nominated Michael Ovitz as chairman, two Pershing affiliates to the board, and a new employment contract for Grainge.
- Vivendi ended Tuesday up 9% and Bollore up roughly 4% on the news; UMG was originally spun out of Vivendi in 2021 and listed on Euronext Amsterdam at a €46 billion valuation.
Why it matters: Pershing's €55.8 billion bid gives Bollore a clean exit for its 18% stake — the exact overhang Ackman blames for UMG's 14% YTD share slide. If accepted, UMG would finally get its long-sought NYSE listing, Michael Ovitz as chairman, and a new contract for CEO Lucian Grainge by year-end.
