Pershing Square Bid Universal Music
Pershing Square bid Universal Music with a cash-and-stock proposal to re-domicile UMG to Nevada and list on NYSE, prompting repricing and liquidity shifts.
KEY TAKEAWAYS
- Pershing Square proposed a cash-and-stock takeover valuing Universal Music at $64.3 billion, about $35.05 per share.
- The proposal would re-domicile UMG as a Nevada corporation and seek a primary NYSE listing to boost liquidity.
- The offer pairs €9.4 billion cash with 0.77 shares per UMG share and is non-binding.
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Pershing Square Capital Management, led by Bill Ackman, proposed on April 7, 2026, to acquire Universal Music Group N.V. in a cash-and-stock deal that would convert the company into a Nevada corporation listed on the New York Stock Exchange. The bid aims to address prolonged weakness in Universal Music’s shares.
Offer Terms and Valuation
The proposal offers €9.4 billion in cash plus 0.77 shares of the combined company for each Universal Music share. This values the company at $64.3 billion, or about $35.05 per share. The cash-and-stock package would reprice Universal Music and has immediate implications for shareholders and debt holders.
Structure and Shareholder Context
The bid calls for re-domiciling Universal Music as a Nevada corporation with a primary listing on the New York Stock Exchange. Pershing Square described the proposal as non-binding and noted it would require cross-border regulatory steps, including disclosures under the EU Market Abuse Regulation.
Universal Music disclosed it is operating a €500 million share buyback program and repurchased 231,142 shares at an average price of €16.84 during April 1–2, totaling about €3.9 million. This average price is well below the valuation implied by the proposal. The buyback underscores management’s active support of the share register amid the bid.
Pershing Square previously exited a 2021 special-purpose acquisition company (SPAC) transaction tied to Universal Music, a detail investors will consider when assessing the offer.
