Pershing Square Proposes €64B Universal Music Group Acquisition at 78% Premium
Bill Ackman’s Pershing Square proposed a €64B cash-and-stock deal valuing Universal Music Group at €30.40 per share, a 78% premium, merging with SPARC Holdings to form an NYSE-listed New UMG under US GAAP. UMG shares jumped 13% on the announcement, potentially paving the way for S&P 500 inclusion.
1. Deal Structure
Pershing Square’s proposal offers Universal Music Group shareholders €5.05 per share in cash plus 0.77 New UMG shares for each existing share, valuing the deal at roughly €64 billion and forming a combined entity through Pershing Square SPARC Holdings.
2. Funding and Valuation
The transaction values UMG at €30.40 per share, a 78% premium over the April 2 closing price. Pershing Square will contribute €2.5 billion and plans to raise €1.5 billion by selling UMG’s Spotify stake, with artists receiving €750 million from that sale.
3. Strategic Implications
The merged company will be SEC-registered in Nevada, report under US GAAP, and list on the NYSE. This move could drive inclusion in major US indexes such as the S&P 500, and shares rose 13% on the announcement, reversing a 23% decline since 2021 despite 60% revenue growth.