What Is UMG’s Real Value? Investors & Music Execs Weigh in on Pershing Square Bid

Trending on Billboard While some headlines say Pershing Square’s offer to buy the Universal Music Group (UMG) values the company at $64 billion — which would make it by far the biggest music industry deal ever — if you get into the details of the offer, it looks like Pershing Square’s founder and CEO, Bill Ackman, is trying to buy the major on the cheap. At least that’s the assessment of some Wall Street music investors and music industry executives. For one thing, despite all the headlines touting the more than $60 billion valuation of the convoluted offering, the cash option, if it were available for all shares — which it is not — wouldn’t even be bigger than UMG’s initial public offering. Related Pershing Square’s valuation is based on its forward-looking view that UMG’s stock price will have a projected value of 30.40 euros ($35) per share on Dec. 31, 2026, which would give the deal a valuation of 55.55 billion euros ($64 billion). However, if you read Pershing Square’s letter to the UMG board, it says UMG shareholders may elect to receive all cash or a mix of stock and cash consideration. If shareholders choose to receive all
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