Universal Music and Pershing Square Merger Countdown... "Largest SPAC Merger Ever"

American billionaire investor and hedge fund industry mogul Bill Ackman
[Photo by Reuters]

[Asia Economy Reporter Cho Hyun-ui] The world's largest music label Universal Music and a special purpose acquisition company (SPAC) established by American billionaire investor and hedge fund mogul Bill Ackman have entered the final countdown for a merger. If the merger is successful, it will be the largest SPAC merger in history.

The Wall Street Journal (WSJ) reported this on the 3rd (local time), citing sources familiar with the matter.

Universal Music's valuation was estimated at approximately $40 billion (44.58 trillion KRW). Although the final decision has not been made, an official announcement could be made within weeks.

WSJ explained, "This surpasses the previous largest SPAC merger case, Southeast Asian ride-sharing and delivery service company 'Grab,' which was valued at $35 billion at the time."

A SPAC is a nominal company (paper company) established for the purpose of acquiring and merging with other companies. It raises funds through an initial public offering (IPO) and later acquires or merges with unlisted companies. Ackman's hedge fund Pershing Square Capital Management raised $4 billion last year and listed the SPAC on the New York Stock Exchange (NYSE).

WSJ stated, "Ackman initially told investors he would announce the merger by the end of March this year, but recently told this publication in an interview that more time is needed."

Meanwhile, Vivendi announced in February that it plans to spin off Universal Music and list it on the Dutch stock exchange. WSJ said, "This plan is still valid," and explained, "With this merger, Vivendi and Pershing Square Capital Management could each own 10% of Universal Music's shares." Chinese information technology (IT) company Tencent Holdings also holds about 20% of Universal Music's shares.

This content was produced with the assistance of AI translation services.