Universal Music Group (UMG) announced on Wednesday, January 15, that Pershing Square Holdings, led by billionaire investor Bill Ackman, has formally requested a secondary listing for the company on a US stock exchange.
Under an agreement disclosed earlier, UMG will organize an underwritten offering for Pershing Square to sell at least $500 million worth of shares by September 15, 2025. Ackman confirmed the decision on social media, citing expectations of increased demand for UMG shares and improved trading liquidity. He also noted the move would attract more analysts and investors restricted to US-listed securities.
Pershing Square currently holds a 7.6% stake in UMG after distributing 47 million shares, or 2.6% of UMG, to co-investors earlier this month. The planned share sale is part of the listing process. UMG emphasized that its Amsterdam domicile will remain unchanged, despite past discussions about relocating due to challenges in Amsterdam’s business environment.
BNPP Exane analyst William Packer expressed optimism about the dual listing strategy, anticipating benefits such as enhanced liquidity and potential index inclusions. While UMG’s stock faced challenges in 2024, including concerns about streaming growth, Packer highlighted improved prospects for 2025, citing the company’s focus on its “streaming 2.0” vision.
UMG, home to artists such as Taylor Swift, remains one of the largest music companies globally. Its potential US listing is expected to expand its investor base and provide additional opportunities for growth.
