economy
Universal Music stock rises after Pershing Square's $64 billion takeover proposal
Bill Ackman's Pershing Square said Universal Music's stock price has "languished" due to a range of issues that can be addressed with the merger.
TL;DR
- Pershing Square plans to buy Universal Music Group (UMG) in a $64.4 billion cash and stock deal.
- The proposal offers a 78% premium to UMG's closing share price on April 2.
- Pershing Square CEO Bill Ackman cited issues unrelated to UMG's music business performance, such as Bollore Group's stake and postponed U.S. listing, as reasons for stock underperformance.
- The merged company would list on the New York Stock Exchange.
- Pershing Square proposed a board refresh, including naming Michael Ovitz as chairman.
- UMG was spun out of Vivendi in 2021 with an initial valuation of 46 billion euros.