Billionaire Floats Huge Music Industry Deal

Financier Bill Ackman is making a run at Universal Music Group with an offer that pegs the world's biggest record label at about $60 billion. That's nearly 80% higher than where it traded last week, notes the New York Times. His Pershing Square Capital wants UMG to merge with Pershing Square Sparc Holdings in a deal that would move the company's listing from Amsterdam to the New York Stock Exchange and base the new entity in Nevada, reports the Wall Street Journal. If UMG's board and investors sign off, Pershing expects the transaction to close by year's end.

Ackman argues UMG's share price has been dragged down by factors unrelated to its business, despite a roster that includes Taylor Swift, Bad Bunny, the Beatles, Billie Eilish, and more than 30% of the global recorded-music market. Warner Music Group and Sony Music Entertainment are UMG's two main rivals. Major shareholders—among them French billionaire Vincent Bollore, investment firm Vivendi, and China's Tencent—control heavy voting power, and the complex cash-and-stock deal needs two-thirds investor approval. UMG shares jumped about 13% Tuesday but still trades below Pershing's valuation. Universal declined to comment.