Investor Bill Ackman wants to bring Universal Music Group back to the United States, and he says he has a contractual right to do so.
In a post on X, Ackman said that he plans to centralize his company Pershing Square Holdings at the London Stock Exchange and eliminate its listing on Amsterdam’s Euronext exchange. He adds in the post that “Pershing Square has a contractual right to cause UMG to be listed in the U.S. We will exercise this right and achieve a U.S. listing for UMG no later than some time next year.”
Pershing owns about 10 percent of UMG, the world’s largest music label. While UMG’s main office is in Santa Monica, it is headquartered in the Netherlands and has been listed on the Euronext exchange ever since going public in 2021 in a deal that included Ackman’s firm.
Vivendi, the French media and telecom giant, previously owned UMG and spun it out in the deal.
Ackman added that “UMG trades at a large discount to its intrinsic value with limited liquidity in significant part due to it not having its primary listing on the [New York Stock Exchange] or [Nasdaq]
and not being eligible for S&P 500 and other index inclusion. We are going to fix this. Now is a good and appropriate time to do so.”
In a statement to The Hollywood Reporter Saturday, a UMG spokesperson said that “Pershing has the right to request a listing in the U.S. subject to a Pershing entity selling at least $500 million in UMG shares as part of the listing,” however they added that “Pershing does not have any right to require UMG to become a U.D. domiciled company or delist from Euronext Amsterdam.”
“While the company will endeavor in good faith to comply with its contractual obligations with respect to undertaking the process of a U.S. listing at the request of Pershing, any actions or decisions beyond those necessary to comply (including any decisions to change the domicile of the company) will be based on an analysis taking into account what is value maximizing and in the best interests of all the shareholders of the company,” the spokesperson added.
Ackman said that he had been considering the shift for Pershing for some time, but that “events in Amsterdam during the last 24 hours provide an appropriate tipping point for this conclusion.”
“Concentrating the listing on one exchange, the LSE and leaving a jurisdiction that fails to protect its tourists and minority populations combine both good business and moral principles,” he continued. “We can also save money and improve liquidity for shareholders to boot.”
Ackman’s post came after Israeli soccer fans were attacked in Amsterdam following an exhibition match between Israel’s Maccabi Tel Aviv and the local team Ajax. The attacks, which authorities said were antisemitic in nature, resulted in dozens of injuries and caused authorities to ban protests for three days.
Ackman has made combatting the rise in global antisemitism a personal cause, including criticizing his alma mater Harvard after claims of antisemitism arose in the last year following the Oct. 7 attacks in Israel.