Universal Music Group, the industry titan representing global superstars like Taylor Swift, Sabrina Carpenter, and Kendrick Lamar, has received an acquisition worth $64.3 billion.
The offer comes from the US investment company Pershing Square led by billionaire Bill Ackman. Under the proposal merger, the world’s largest music company will shift its primary listing to the US.
Bill Ackman is pushing for a major overhaul of the world’s largest music company on the grounds of “languished stock prices.”
According to Ackman, the company “had done an excellent job nurturing and continuing to build a world-class artist roster and generating strong business performance,” but the issue of “languished stock prices” can be resolved through transactions.
In a letter to its board of directors on Tuesday, Ackman blamed various factors, including uncertainty around Bolloré Group's 18 percent stake and delay in its US listing, for the company’s underperformance.
Under the proposed terms, Universal shareholders would receive €5.05 per share in cash (totalling €9.4 billion) plus 0.77 shares in a new entity to be listed on the New York Stock Exchange.
Following the announcement, Universal’s share rose 11 percent in early trading. The company not only represents industry’s A-listed stars but also runs Abbey Road studios and owns labels such as EMI and Island Records.
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