UMG Issues Statement on Bill Ackman Acquisition Proposal
The Hollywood Reporter • • business
Key Points:
- Universal Music Group (UMG) announced that its board and advisors will review Bill Ackman’s $63 billion takeover proposal, considering its impact on shareholders, employees, artists, and other stakeholders.
- UMG expressed full confidence in its current strategy and leadership under Sir Lucian Grainge and stated it will not comment further until the board completes its review.
- Ackman’s Pershing Square Capital Management argued that UMG’s stock is undervalued due to factors like the delay in U.S. stock market listing and poor shareholder relations, despite strong business performance and a world-class artist roster.
- Ackman proposed that if the acquisition occurs, UMG would merge with Pershing Square SPARC Holdings and become a Nevada corporation listed on the New York Stock Exchange.
