![\"music](\"https:\/\/www.digitalmusicnews.com\/wp-content\/uploads\/2025\/01\/Ackman-Pershing-Square-1024x576.png\" "\\"music\\"")
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Pershing Square founder Bill Ackman appears before Congress.<\/p>\n<\/div>\n
Music Pershing Square has distributed about 47 million shares in Universal Music Group (UMG), leaving its own stake at approximately 140 million shares. <\/strong><\/h2>\nPershing Square Capital Management formally announced the move today, three years and change after first purchasing<\/a> a piece of Universal Music from Vivendi.<\/p>\nIn connection with that initial investment, Pershing rolled out multiple \u201cfinite-life co-investment vehicles\u201d to hold a portion of the UMG shares.<\/p>\n
Now, with those finite-life vehicles having nearly hit their January 31st end date, the involved funds \u201chave elected to distribute UMG stock to their limited partners rather than cash.\u201d<\/p>\n
That refers specifically to the aforementioned 47 million shares, representing about 2.6% of the major label and reaching \u201cnon-Pershing Square affiliated investors.\u201d<\/p>\n
Even after this tax-free stock distribution, Pershing Square proper holds the initially noted 140 million UMG shares (7.6% of the business), including stakes attributable to its core funds, founder Bill Ackman, \u201chis affiliates,\u201d and employees.<\/p>\n
Running with the point, Ackman and his affiliates aren\u2019t \u201cselling any shares in connection with the distribution,\u201d per the announcement. And Pershing \u201ccontinues to believe that UMG will remain an attractive long-term investment,\u201d with its present share price \u201csubstantially undervalued,\u201d the text drives home.<\/p>\n
Reading between the lines there, it\u2019s certainly possible that 2025 will bring a more aggressive push for Hilversum-headquartered and Amsterdam-listed Universal Music to relocate. <\/strong><\/h4>\nHardly a stranger to investor activism, Pershing Square (which itself is exiting the Euronext Amsterdam at January\u2019s end<\/a>) and the Universal Music board member Ackman began urging<\/a> UMG\u2019s relocation this past November.<\/p>\n\u201cUMG trades at a large discount to its intrinsic value with limited liquidity in significant part due to it not having its primary listing on the NYSE or NASDAQ and not being eligible for S&P 500 and other index inclusion,\u201d Ackman wrote in part at the time.<\/p>\n
Out of the gate, Universal Music pushed back<\/a> against the blunt suggestion \u2013 though time will tell how the situation unfolds throughout 2025. As noted, Pershing and Ackman are far from inexperienced in this area. Plus, UMG stock is, in fact, still trading at a material discount<\/a>.<\/p>\nIn any event, Universal Music last year acknowledged Pershing\u2019s right to spearhead a U.S. listing involving its owned UMG shares. Ackman previously signaled that this listing would arrive sometime during 2025, and for obvious reasons, it\u2019ll be worth closely monitoring, among other things, the relevant market cap.<\/p>\n<\/section><\/div>\n
In connection with that initial investment, Pershing rolled out multiple \u201cfinite-life co-investment vehicles\u201d to hold a portion of the UMG shares.<\/p>\n
Now, with those finite-life vehicles having nearly hit their January 31st end date, the involved funds \u201chave elected to distribute UMG stock to their limited partners rather than cash.\u201d<\/p>\n
That refers specifically to the aforementioned 47 million shares, representing about 2.6% of the major label and reaching \u201cnon-Pershing Square affiliated investors.\u201d<\/p>\n
Even after this tax-free stock distribution, Pershing Square proper holds the initially noted 140 million UMG shares (7.6% of the business), including stakes attributable to its core funds, founder Bill Ackman, \u201chis affiliates,\u201d and employees.<\/p>\n
Running with the point, Ackman and his affiliates aren\u2019t \u201cselling any shares in connection with the distribution,\u201d per the announcement. And Pershing \u201ccontinues to believe that UMG will remain an attractive long-term investment,\u201d with its present share price \u201csubstantially undervalued,\u201d the text drives home.<\/p>\n
Reading between the lines there, it\u2019s certainly possible that 2025 will bring a more aggressive push for Hilversum-headquartered and Amsterdam-listed Universal Music to relocate. <\/strong><\/h4>\nHardly a stranger to investor activism, Pershing Square (which itself is exiting the Euronext Amsterdam at January\u2019s end<\/a>) and the Universal Music board member Ackman began urging<\/a> UMG\u2019s relocation this past November.<\/p>\n\u201cUMG trades at a large discount to its intrinsic value with limited liquidity in significant part due to it not having its primary listing on the NYSE or NASDAQ and not being eligible for S&P 500 and other index inclusion,\u201d Ackman wrote in part at the time.<\/p>\n
Out of the gate, Universal Music pushed back<\/a> against the blunt suggestion \u2013 though time will tell how the situation unfolds throughout 2025. As noted, Pershing and Ackman are far from inexperienced in this area. Plus, UMG stock is, in fact, still trading at a material discount<\/a>.<\/p>\nIn any event, Universal Music last year acknowledged Pershing\u2019s right to spearhead a U.S. listing involving its owned UMG shares. Ackman previously signaled that this listing would arrive sometime during 2025, and for obvious reasons, it\u2019ll be worth closely monitoring, among other things, the relevant market cap.<\/p>\n<\/section><\/div>\n
\u201cUMG trades at a large discount to its intrinsic value with limited liquidity in significant part due to it not having its primary listing on the NYSE or NASDAQ and not being eligible for S&P 500 and other index inclusion,\u201d Ackman wrote in part at the time.<\/p>\n
Out of the gate, Universal Music pushed back<\/a> against the blunt suggestion \u2013 though time will tell how the situation unfolds throughout 2025. As noted, Pershing and Ackman are far from inexperienced in this area. Plus, UMG stock is, in fact, still trading at a material discount<\/a>.<\/p>\n In any event, Universal Music last year acknowledged Pershing\u2019s right to spearhead a U.S. listing involving its owned UMG shares. Ackman previously signaled that this listing would arrive sometime during 2025, and for obvious reasons, it\u2019ll be worth closely monitoring, among other things, the relevant market cap.<\/p>\n<\/section><\/div>\n