Pershing Square Sells $1.5 Billion UMG Stake as Universal Music Plans US Stock Market Debut
Bill Ackman's 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 comprised around 50 million shares at €26.60 each.
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Despite the sale, Ackman remains highly optimistic about UMG's future. The company will continue to be Pershing Square's largest position, representing approximately 17% of its portfolio, down from 27% previously. Pershing Square retains a significant 7.6% stake in UMG, which it initially acquired from Vivendi in 2021.
The sale comes as UMG prepares for a dual listing, with its US exchange listing expected by September 2025. This move follows Ackman's late 2023 announcement to pursue a US listing after deciding to delist Pershing Square from the Amsterdam exchange.
Ackman praised UMG's management team, particularly CEO Lucian Grainge, 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." He emphasized that UMG has outperformed most of Pershing Square's portfolio year-to-date, crediting the company's strong recent results.
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