Bill Ackman's investment firm Pershing Square has sold a 2.7% stake in Universal Music Group (UMG) for approximately $1.5 billion, ahead of UMG's planned US secondary listing. The sale consisted of roughly 50 million shares at €26.60 each.

Despite the significant sale, Ackman remains highly optimistic about UMG's future. The company will continue to be Pershing Square's largest position, representing about 17% of its portfolio, down from 27% previously.

Pershing Square maintains a 7.6% stake in UMG's outstanding shares, which it initially acquired from Vivendi in 2021 before UMG's listing on the Euronext Amsterdam exchange.

Key points about the sale and UMG's future:

• UMG has significantly outperformed other Pershing Square portfolio holdings year-to-date
• The company plans to obtain a US exchange listing by September 2025
• Ackman praised CEO Lucian Grainge and UMG's management team for their performance
• The decision to pursue US listing came after Ackman de-listed Pershing Square from the Amsterdam exchange
• UMG will become a dual-listed company once the US listing is complete

Ackman emphasized his confidence in UMG's business model, stating, "In a world of uncertainty, owning a royalty on music with the best management team in the industry is a blissfully comfortable and profitable place to be."

Related Articles

Previous Articles