Bill Ackman Wants to Make a $64 Billion Bet on Bad Bunny, Drake, and Adele

The billionaire investor has offered to purchase Universal Music Group

BY MOSES JEANFRANCOIS, NEWS WRITER @MOSESJEANS

Bill Ackman. Illustration: Inc.; Photos: Getty Images; Adobe Stock

Hedge fund manager Bill Ackman has offered to buy Universal Music Group for $64 billion. 

Ackman’s investment firm, Pershing Square Capital Management, announced on Tuesday that it was looking to move UMG’s stock market listing from Amsterdam to New York. UMG holds a dominant roster in the music industry, with top-selling artists like Drake, Billie Eilish, Ariana Grande, Bad Bunny, Coldplay, and Adele. 

The firm is looking to reboot the music group’s finances with the new transaction. UMG would merge with Pershing Square SPARC Holdings, Ltd.; the newly merged company would become a Nevada corporation—New UMG—listed on the New York Stock Exchange. Perishing Square expects the transaction to close by year-end. 

UMG was officially formed in 1996, renamed, and rebranded from its predecessor, Music Corporation of America (MCA Inc.). UMG currently operates as a publicly traded entity with a mixed ownership structure from major groups like Bolloré and Vivendi. 

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Pershing Square originally bought a stake in UMG in 2021 at a $40 billion valuation, and Ackman sat on the label’s board until last year. Ackman, a billionaire, is known by many as an activist investor with key investments in brands like Chipotle and Herbalife.

According to the firm, UMG’s stock price has been underperforming for several reasons, but will be fixed primarily by moving its holdings to the American market. 

“UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business and importantly, all of them can be addressed with this transaction,” said Ackman in a statement. 

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