What Do We Know About Ackman’s Bid For Umg?
Ackman announced his bid to acquire the record label in April, saying the company’s “stock price has languished due to a combination of issues that are unrelated to the performance of its music business.” Ackman’s transaction would merge the record label with Pershing Square SPARC Holdings, move UMG’s primary stock listing from Amsterdam to the New York Stock Exchange and would value the company at about $35.13 per share. Upon the announcement of his bid, UMG’s shares surged about 10%. Ackman said the cash portion of the transaction would be funded with about $2.9 billion in cash from Pershing Square, $6.2 billion in debt financing and $1.7 billion from selling UMG’s stake in Spotify. Some analysts, though, doubted Ackman’s offer would go far. Nicolas Marmurek, an analyst at Square Global, told Bloomberg in April the proposal “looks very much dead from the start” without Bolloré’s backing, saying he doubted Bolloré would accept Ackman’s terms.
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Key Background
Ackman expressed interest in UMG as early as 2021, announcing his intention to purchase a 10% stake in the company. He initially said he would buy a 10% stake through his SPAC, but then purchased the stake through Pershing Square after pushback from regulators. Ackman sat on the company’s board of directors until he resigned in 2025, citing other commitments. While on the board, he pushed for UMG to move its stock listing to New York, saying it “trades at a large discount to its intrinsic value with limited liquidity in significant part due to it not having its primary listing” in the United States.
Forbes Valuation
Ackman is worth $9 billion, according to Forbes estimates. He is the founder of Pershing Square, a hedge fund with $20 billion in assets under management. Vincent Bolloré and family are worth $10.7 billion, according to Forbes estimates. The Bolloré Group was founded in 1822 as a paper manufacturer.
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Further Reading
Universal Music Group Shares Surge After Bill Ackman’s Pershing Square Offers To Purchase Label (Forbes)
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