UMG stock price soars after Bill Ackman offers to buy the music giant behind Taylor Swift and Bad Bunny

Universal Music Group saw its shares (AMS: UMG) rise more than 11% on Tuesday, following a proposal from billionaire Bill Ackman to buy the music giant through his investment firm Pershing Square Capital Management. Pershing Square currently owns a 10% stake in Amsterdam-listed UMG. Despite today’s bump, the stock is down about 15% year to date.   UMG has an extensive music catalogue and is home to major recording artists such as Taylor Swift, Bob Dylan, and Bad Bunny.  What would the deal mean for UMG? If approved, the deal would offer shareholders €9.4 billion ($10.9 billion) in cash and 0.77 shares in “new UMG” for each share of UMG they currently own.  Overall, this would equal out to €30.40 ($35.11) per share, a 78% premium compared to the closing price on April 2. If all goes well, shares could reach a 92% premium from that date by the end of 2026. Ackman details all of this in a letter to UMG’s board members, on which he sat until last year.  The proposa