Pershing Square, led by Bill Ackman, announced plans on Tuesday to acquire Universal Music Group in a cash and stock transaction, with the merged entity set to list on the New York Stock Exchange by year-end.
Deal Structure
- The acquisition involves a combination of cash and stock.
- UMG will merge with Pershing Square to form a new company.
- The new entity will be listed on the NYSE.
- The deal is expected to close by the end of the year.
CEO Statement
Bill Ackman, CEO of Pershing Square, said: "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."
Stock Performance Concerns
Ackman noted that UMG's stock price has been affected by issues unrelated to its music business, which this transaction can address.
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