Bill Ackman’s Pershing Square has submitted a bid to buy Universal Music Group (UMG) in a cash and stock deal worth $64.4 billion.
The proposed bid would see shareholders receive $10.85 billion in cash and 0.77 shares of stock in the new company for each share of UMG held.
In a statement this morning, Ackman praised the performance of Universal under CEO Lucian Grainge but argued that the firm has “languished” in recent years.
“Since UMG’s listing, Sir Lucian Grainge and the company’s management have done an excellent job nurturing and continuing to build a world-class artist roster and generating strong business performance,” he said.
“However, UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business, and importantly, all of them can be addressed with this transaction.”
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