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Vivendi To Sell A Ten Percent Stake In UMG To Bill Ackman’s SPAC

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PARIS, France (CelebrityAccess) — French media conglomerate Vivendi announced it has reached an agreement for the sale of a 10% stake in Universal Music Group to Pershing Square Tontine Holdings, Ltd. (PSTH), led by William Ackman/

The deal, which Vivendi expects to conclude by September 15 at the latest, values Universal Music Group at €35 billion or more than $42 million.

The sale to the Pershing Square Special Purpose Acquisition Company is in addition to the 20% equity stake Vivendi sold to a consortium led by Tencent group.

The deal, which is still subject to regulatory scrutiny, is expected to close before Vivendi’s planned listing of UMG on several European exchanges as 60% of the company’s shared will be distribute to investors.

Ackman, founder and CEO of hedge fund Pershing Square Capital Management, has gained a reputation as an activist investor, including a bid to turn around brick and mortar retailer J.C. Penney. Ackman has also gained notoriety for his short strategies on companies such as Herbalife and bear bets such as hedging in early 2020 that reportedly protected his portfolio from major losses amid economic fallout from the COVID-19 pandemic.

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