Ackman’s UMG Deal Includes Grandpa’s Hit
“Universal Music Group is one of the greatest businesses in the world,” said Ackman, CEO of PSTH. “Led by Sir Lucian Grainge, it has one of the most outstanding management teams that I have ever encountered. Importantly, UMG meets all of our acquisition criteria and investment principles as it is the world’s leading music company, with a royalty on the growing global demand for music. We are delighted to work with Vivendi on this iconic transaction, and look forward to its consummation.” The proposed transaction is subject to the completion of mutually satisfactory transaction documentation, but is not subject to additional due diligence.
According to the WSJ, Ackman started discussing a potential hook-up with Universal and Vivendi last November after he was introduced to a member of Vivendi’s board. Last week, after months of Zoom meetings, Ackman flew to Paris, where he met face-to-face with Vincent Bolloré, the billionaire chairman of the supervisory board, and Vivendi CEO Arnaud de Puyfontaine. Last Wednesday night, Ackman had dinner with Bolloré on the roof of Vivendi’s offices overlooking the Arc de Triomphe, and by Thursday, the WSJ says Ackman was back in New York and they agreed on a deal via Zoom.
Universal parent Vivendi SE said on Friday that the transaction is subject to a shareholder vote later this month to distribute 60% of Universal’s shares and list the company in the Netherlands.