Pershing Square Distributes 2.6% of UMG Stock, Maintains Strong Long-Term Investment Position
Pershing Square has completed a significant distribution of Universal Music Group (UMG) shares, distributing approximately 47 million shares (2.6% of UMG) to non-affiliated investors, while maintaining its core holding of 140 million shares (7.6%).
Bill Ackman speaking at Pershing Square
The distribution comes from Pershing's finite-life co-investment vehicles, which are approaching their January 31st end date. Rather than providing cash, these vehicles opted to distribute UMG stock directly to limited partners.
Notably, Bill Ackman and his affiliates are not selling any shares during this distribution. Pershing Square maintains its belief that UMG remains an attractive long-term investment, suggesting the current share price is "substantially undervalued."
This move follows Pershing Square's recent advocacy for UMG to relocate its listing to the NYSE or NASDAQ. In November, Ackman argued that UMG's current trading discount and limited liquidity are largely due to its absence from major U.S. exchanges and ineligibility for S&P 500 inclusion.
While Universal Music initially resisted the relocation suggestion, they have acknowledged Pershing's right to initiate a U.S. listing for its owned shares. This listing is expected to occur sometime in 2025.
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The distribution represents a strategic move in Pershing Square's ongoing investment in UMG, while potentially setting the stage for a more aggressive push toward U.S. market presence in 2025.
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