Vivendi sold a 7.1% stake in the record major Universal to William Ackman's investment firm. All the details
French media group Vivendi has sold a 7.1 percent stake in US record company Universal Music Group to Pershing Square Holdings, the investment company of US billionaire William Ackman.
2.8 BILLION AGREEMENT
Vivendi said the sale was valued at $ 2.8 billion, based on an enterprise value of Universal Music Group – a major representing artists such as Tailor Swift, Lady Gaga and Justin Bieber – of $ 41 billion. for 100 percent.
NEW ATTEMPT BY ACKMAN
As Reuters explains, William Ackman managed to secure a sizeable stake in Universal following the failure – last month, due to opposition from US regulators – of an operation through SPAC to purchase a stake of 10 percent.
Now, however, Ackman will be able to increase his stake in Universal by a further 2.9 percent by 9 September through the funds he manages or controls.
WHAT ACKMAN WANTS TO DO
According to sources close to Ackman overheard by Reuters , the billionaire plans to buy more shares of Universal Music Group and is currently raising new capital.
Ackman told his clients that music is the cheapest form of entertainment in the world, as well as a wise investment.
Ackman's move anticipates Vivendi's plan to list and sell 60 percent of Universal to its shareholders. The Chinese technology group Tencent has acquired 20 percent of Universal in recent months.
THE COMMENT OF VIVENDI
In a statement, Vivendi said he "welcomes" Ackman's entry into Universal Music Group: "a major American investor, who once again provides proof of the music company's global success and attractiveness."
The value of Universal Music Group is greater than that of the parent company Vivendi. The major, Reuters explains, is thriving on the recovery of the music industry, buoyed by rising streaming revenues and recent growth in CD and vinyl sales.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/vivendi-accordo-ackman-universal-music-group/ on Wed, 11 Aug 2021 09:50:34 +0000.