"If approved, the deal would offer shareholders €9.4 billion ($10.9 billion) in cash and 0.77 shares in 'new UMG' for each share of UMG they currently own."
"While business performance has been strong, UMG's share price has languished. Since the public listing in September 2021, revenues and Adjusted EBITDA have grown 60% and 70% respectively, while UMG's share price has declined 23%."
"Ackman details a number of reasons he attributes to UMG shares' 'underperformance,' including postponing a listing on a U.S. stock exchange and uncertainty around Bolloré Group's 18% stake in UMG."
Bill Ackman's investment firm proposes to buy Universal Music Group, offering shareholders €9.4 billion in cash and shares. This deal would provide a 78% premium per share. UMG's share price has declined despite strong business performance, with revenues and Adjusted EBITDA growing significantly since its 2021 IPO. Ackman attributes UMG's underperformance to delays in U.S. listing and uncertainty regarding major stakeholders. UMG has not publicly responded to the proposal yet.
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