Pershing Square Distributes 2.6% of UMG Stock, Maintains Strong Long-Term Investment Outlook
Pershing Square has completed a significant 2.6% distribution of Universal Music Group (UMG) stock, consisting of approximately 47 million shares, while maintaining its core investment of 140 million shares (7.6% ownership) in the major label.
Bill Ackman speaking at Pershing Square
The distribution was executed through finite-life co-investment vehicles, which opted to distribute UMG stock directly to limited partners instead of cash ahead of their January 31st deadline. This tax-free stock distribution went to non-Pershing Square affiliated investors.
Bill Ackman, along with his affiliates, will retain their shares, with Pershing Square expressing strong confidence in UMG's future potential. The firm believes UMG's current share price is "substantially undervalued."
Notably, Pershing Square has been advocating for UMG's relocation from the Euronext Amsterdam to a U.S. exchange since November. Ackman argues that UMG's current trading discount and limited liquidity are largely due to its absence from major U.S. exchanges like NYSE or NASDAQ, preventing its inclusion in the S&P 500 and other significant indices.
While Universal Music initially resisted the relocation proposal, Pershing Square retains the right to initiate a U.S. listing for its owned shares. This listing is expected to materialize in 2025, potentially marking a significant shift in UMG's market presence.
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