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Overview
- Pershing Square submitted a formal, non-binding proposal to buy Universal Music Group in a deal that would merge the label with Pershing’s SPARC vehicle and list the new company on the New York Stock Exchange.
- Shareholders would receive €5.05 in cash per UMG share plus 0.77 share of the new company, which implies about €30.40 per share and a roughly 78% premium to the prior close.
- UMG shares jumped about 11% to 13% after the announcement, signaling investor support for a U.S. listing and governance changes.
- Reuters has reported that Michael Ovitz, a former Disney president, is expected to chair the new board if the transaction proceeds.
- Pershing said it would fund the cash portion with its own capital, bank loans, and some proceeds from its Spotify stake, and it is targeting completion by year-end pending negotiations and approvals.