Pershing Square proposes $64bn Universal Music deal
Bill Ackman’s Pershing Square has proposed a major $64 billion deal to merge its acquisition vehicle with Universal Music Group, in a move aimed at relisting the world’s largest music company in the United States and boosting its valuation.
Under the non-binding proposal, Pershing Square’s SPARC Holdings would combine with Universal Music Group, with the newly formed entity expected to be listed on the New York Stock Exchange. The plan values Universal Music at about €30.40 per share, representing a 78% premium over its last closing price, according to Reuters calculations, News.Az reports, citing Reuters.
The deal, if completed, would create a combined structure worth approximately €55.75 billion ($64.31 billion), making it one of the most significant entertainment sector transactions in recent years.
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The proposal comes after Universal Music delayed plans for a US listing last month, a move that Pershing Square had previously supported as a way to improve liquidity and strengthen the company’s market valuation.
In a letter to the company’s board, Ackman praised Universal’s management but said its share price had underperformed since its 2021 listing, citing factors including shareholder structure and lack of a US listing as key constraints.
Universal Music—home to global artists such as Taylor Swift, Billie Eilish and Drake—saw its shares rise sharply following news of the proposal, reflecting investor optimism over a potential valuation boost.
Under the structure outlined by Pershing Square, shareholders would receive a combination of cash and shares in the new entity. The cash component would be financed through multiple sources, including debt and proceeds linked to Pershing’s investment holdings.
The proposed transaction remains subject to negotiation and regulatory approval, and Pershing Square has indicated it expects the deal to close later this year if agreed.
The announcement adds fresh momentum to ongoing discussions about how major global entertainment companies structure their listings and access US capital markets.
By Aysel Mammadzada
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