As a seasoned gamer with a keen eye for business strategies and a deep appreciation for the music industry, I find Bill Ackman’s move to potentially bring Universal Music Group back to the United States an intriguing development.
Bill Ackman is aiming to relocate Universal Music Group to the U.S., as he believes he holds the necessary contractual permissions for such action.
According to a recent update on platform X, Ackman announced his intention to move Pershing Square Holdings to the London Stock Exchange, while simultaneously delisting it from Amsterdam’s Euronext exchange. In this post, he also mentioned that Pershing Square has the contractual ability to list United Music Group (UMG) in the U.S., and plans to do so, aiming for a U.S. listing for UMG within the next year.
Approximately one tenth of Universal Music Group (UMG), the world’s leading music label, is owned by Pershing. Although UMG’s main operational base is located in Santa Monica, it is headquartered in the Netherlands and has been publicly traded on the Euronext stock exchange since its initial public offering in 2021, which also included Ackman’s firm.
Vivendi, the French media and telecom giant, previously owned UMG and spun it out in the deal.
Ackman noted that “UMG is significantly undervalued compared to its real worth, with a lack of fluidity in the market due to it not being listed on either the New York Stock Exchange or Nasdaq, and not being qualified for inclusion in the S&P 500 and other indices. We plan to rectify this situation. Now presents an excellent opportunity to take action.
According to a representative for UMG, stated to The Hollywood Reporter on Saturday, Pershing is entitled to apply for a listing in the U.S., but this requires a Pershing-affiliated entity selling at least $500 million of UMG shares as part of the process. However, it’s important to note that Pershing does not possess the power to compel UMG to transform into a U.D. company domiciled in the U.S., or to delist from Euronext Amsterdam.
The representative stated that although our company aims to fulfill its contractual duties regarding a potential U.S. listing, as requested by Pershing, any further actions or choices (such as altering the company’s home country) will depend on an assessment considering what is most beneficial for all shareholders and maximizes company value.
Ackman mentioned that he’s pondered the change for Pershing over a period, but recent happenings in Amsterdam within the last 24 hours have served as a significant trigger for this decision.
By focusing our efforts on one stock exchange, specifically the London Stock Exchange, and distancing ourselves from countries that don’t prioritize the safety of their tourists and minority groups, we are not only making a sound business decision but also upholding ethical principles,” he explained. “This move could potentially save us money and increase liquidity for our shareholders as well.
After a violent, apparently anti-Semitic attack on Israeli soccer fans in Amsterdam following a match between Maccabi Tel Aviv and Ajax, Carl Icahn posted his thoughts. This incident left many injured and led to a temporary prohibition on protests by authorities for the next three days.
Ackman has taken up the fight against rising global anti-Semitism as a personal mission, even going so far as to criticize his former educational institution, Harvard University, after allegations of anti-Semitism surfaced recently following the October 7th attacks in Israel.
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2024-11-09 22:24