Overview
- Pershing Square, which submitted a non-binding offer Tuesday, valued Universal Music Group at €30.40 per share and proposed €9.4 billion in cash plus 0.77 shares in a new company for each UMG share.
- The plan would merge UMG with Pershing Square SPARC Holdings into a Nevada corporation listed on the New York Stock Exchange, with U.S. reporting standards that could enable inclusion in major stock indexes.
- Pershing outlined funding from about €2.5 billion of its own cash, roughly €5.4 billion of new investment‑grade debt, and about €1.5 billion from selling UMG’s Spotify stake, with €750 million of those Spotify proceeds earmarked for artists.
- Governance changes proposed include naming Michael Ovitz as board chairman, adding two Pershing representatives, and setting a new employment and compensation arrangement for CEO Lucian Grainge.
- The bid requires approval from UMG’s board and major holders, especially Bolloré; Ackman said Bolloré expressed support, which the company has not publicly confirmed, and UMG shares jumped about 11% to 13% after the news with Pershing targeting a close by end‑2026.