On January 15, 2025, Universal Music Group (UMG) announced that Pershing Square, the American hedge fund under the renowned Wall Street investor Bill Ackman, had requested UMG to conduct a secondary listing on the US stock exchange.
In November 2024, UMG stated that Pershing Square had the right to apply for UMG to be listed in the United States, with the condition that Pershing Square must sell at least $500 million worth of UMG shares during the listing process.
However, UMG also clarified that Pershing Square did not have the right to require UMG to become a US company or to delist from Euronext Amsterdam Stock Exchange.
According to a prior agreement, UMG is to assist Pershing Square in selling part of its shares through underwriting before September 15, 2025.
Ackman confirmed this move on the social media platform X. He stated, “We are exercising our rights to push UMG to list in the United States because we believe this will significantly increase the demand (and valuation) for UMG stocks among investors. Some investors are only allowed to invest in securities listed on US exchanges, and listing may attract more analysts to write reports about UMG. We also believe that listing in the US will greatly enhance the liquidity of the stock.”
“We have waived the 120-day filing requirement and extended the deadline to mid-September to provide UMG with sufficient time to list and issue shares in the most favorable manner,” Ackman said.
In November of last year, Israeli football fans were attacked in Amsterdam, the Netherlands, prompting Ackman to consider relocating Pershing Square and UMG out of Amsterdam.
Pershing Square’s shares were delisted from Euronext Amsterdam Stock Exchange in December 2024.
Ackman stated, “Concentrating the listing on one exchange, moving away from areas that cannot protect tourists and minorities, not only adheres to good business practices but also ethical principles. We can also save funds and increase stock liquidity.”
However, UMG at the time refused to delist from Amsterdam. Subsequently, Ackman’s investment firm reduced its stake from 10% to 7.48%.
UMG, home to globally renowned artists like Taylor Swift, is currently one of the largest music companies in the world. Analysts suggest that UMG’s listing in the US this year may enhance liquidity and potentially lead to its inclusion in indices, offering various investment advantages.