Bill Ackman launches $65B bid for Taylor Swift’s label Universal Music

Bill Ackman launches $65B bid for Taylor Swift’s label Universal Music

Bill Ackman has unveiled a cash-and-stock bid for Universal Music Group valuing the music large at roughly $65 billion — sending its shares hovering.

The proposal by Ackman’s hedge fund Pershing Square Capital Management values the music large, which counts Taylor Swift, Drake and Lady Gaga on its roster of megastars, at about $35 per share — a roughly 78% premium to the place the inventory was buying and selling before the provide surfaced.

Ackman’s proposal would give shareholders about $10.85 billion in money and 0.77 shares of new inventory per share.

Bill Ackman has launched a $65 billion bid for Universal Music Group, sending shares sharply greater. Getty Images

Shares of UMG jumped about 11% after news of Ackman’s takeover proposal surfaced.

Ackman argued that UMG’s inventory has underperformed for causes that have little to do with the strength of its core music enterprise — and said those points may very well be mounted by means of the proposed deal.

“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,” he said in a Tuesday assertion.

“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.”

Ackman pointed to a number of headwinds weighing on the shares, including uncertainty tied to Vincent Bolloré’s roughly 18% stake, delays round a deliberate US itemizing and what he described as weak investor communication and outreach.

Taylor Swift headlines the roster at Universal Music Group, which is the goal of Bill Ackman’s $65 billion bid. AP

Under the proposal, UMG would mix with Pershing Square to type a new entity listed on the New York Stock Exchange, with the transaction focused to shut by year-end.

Pershing also called for a shake-up at the board level, including naming Michael Ovitz as chairman and including two representatives from the hedge fund.

Shares of Universal Music Group jumped after Bill Ackman unveiled a $65 billion bid for the music large.

The deal would also require a new employment settlement and compensation bundle for CEO Lucian Grainge.

UMG was spun off from Vivendi SE in 2021, when it debuted on Euronext Amsterdam with a valuation of about $53.18 billion. The company stays the world’s largest music label.

The Pershing Square boss is providing a 78% premium in a $65 billion bid for Universal Music. Christopher Sadowski

Shares of Vivendi and Bolloré rose about 11% and 6.3%, respectively, following news of the proposal.

Ackman has lengthy pushed for UMG to shift its major itemizing to the US, arguing the inventory trades at a steep low cost with restricted liquidity.

UMG and Bolloré didn’t instantly reply to requests for remark. Vivendi declined to remark.

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