Shares of Universal Music Group N.V. (OTC:UNVGY) surged over 11% on Tuesday, as Bill Ackman’s hedge fund Pershing Square offered to buy the world’s biggest music label in a cash-and-stock deal worth around 55.8 billion euros ($64.4 billion).

Under the deal, which is expected to be completed by year-end, UMG shareholders will receive €9.4 billion ($10.85 billion) in cash along with 0.77 shares of new stock for each share they own. This values the transaction at €30.4 per share, representing a 78% premium to UMG's April 2 closing price.

Pershing’s SPARC ⁠Holdings would merge with UMG, and the new entity would become a Nevada corporation listed on the New York Stock Exchange.

Shares of Universal Music Group, behind global superstars including Bad Bunny, Taylor Swift, Billie Eilish and Drake, were trading 11.37% higher in Euronext Amsterdam, while its parent company, Vivendi SE, surged 11.29% in Euronext Paris.

Ackman noted that despite these achievements, UMG’s stock price has been affected by issues unrelated to its music business performance, which this transaction aims to resolve. Over the past year, UMG stock declined by over 17%.

Ackman’s Prep For UMG Listing

This announcement comes after Ackman sold 2.7% of his UMG stake in March 2025, raising more than $1.4 billion. Despite the sale, UMG remained the largest position in Pershing Square’s portfolio. Back then, Ackman had said that he used registration rights for UMG to secure a U.S. exchange listing later in 2025, which he believed would greatly benefit the company.

Later in May, Ackman stepped down from the Board of Directors of Universal Music Group amid new obligations towards Howard Hughes (NYSE:HHH).

Meanwhile, last month, Pershing Square filed for U.S. initial public offerings of its hedge fund and a new fund, Pershing Square USA.

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