Pershing Square Unloads $1.5 billion in Universal Music Group Shares

Pershing Square is selling its remaining shares in Universal Music Group following the rejection of its bid to acquire the music giant. The transaction could bring in around 1.5 billion euros at the high end of the price range.

Pershing Square is selling its 80.6 million shares in Universal Music Group at a price between 17.66 euros and 18 .62 euros.

The $55.55 billion Bid Rejected

The board of Universal Music Group rejected Pershing Square's non-binding bid to purchase the company for more than 55.55 billion euros,stating that it fundamentally and materially undervalues the company and will not deliver superior value creation .

The rejection was also due to a strong consensus against the bid from shareholders,particularly after the board's approval to double its share buyback program, sell half of UMG's Spotify stock and disclose more in-depth finnancial information.

Ackman's Plans for a U.S.-based Listing in Jeopardy

Pershing Square's CEO and Portfolio Manager William Ackman has been pushing for a U.S.-based exchange listing for Universal Music Group since 2024. ackman had also planned to move Universal Music Group's primary stock listing from the Euronext Amsterdam to a U.S.-based exchange if his offer was accepted.

The transaction could be a significant blow to Ackman's plans to list Universal Music Group on a U.S.-based exchange.

What's Next for Universal Music Group?

The company's board has stated that it will continue to explore listing options, but it is unclear if a U.S.-based exchange will be considered.

The rejection of Pershing Square's offer has put the music industry's listing on U.S.-based exchanges on hold, and it remains to be seen if the industry will be listed on a U.S.-based exchange in the future.