Billionaire investor Bill Ackman confirmed Friday that his blank-check company Pershing Square Tontine Holdings is in talks to buy a 10-percent stake of Universal Music Group for about $4 billion.
The transaction would value the Vivendi-owned Universal Music, which is the home to singers like Taylor Swift, Lady Gaga and Kanye West, at around $42.4 billion, making it the largest target ever for a special purpose acquisition company, or SPAC.
The deal is a structured stock purchase, according to Ackman, and would not result in a merger. As a result, Universal would continue as planned to list on the Euronext Amsterdam exchange in the third quarter of 2021.
French media giant Vivendi is the majority owner of Universal Music, which is the world’s biggest music label. Chinese tech company Tencent is a minority stakeholder.
Universal Music Group, the world’s biggest music label, is home to artists like Taylor Swift and Lady Gaga.Alamy Stock Photo
“Universal Music Group is one of the greatest businesses in the world,” said Bill Ackman, chief executive of PSTH. “Led by Sir Lucian Grainge, it has one of the most outstanding management teams that I have ever encountered,” he continued. “Importantly, UMG meets all of our acquisition