Maureen Farrell, Cara Lombardo
Hedge-fund billionaire William Ackman’s special-purpose acquisition company is nearing a transaction with Universal Music Group that would value the world’s largest music business at about $40 billion, people familiar with the matter said.
The deal would be the largest SPAC transaction on record, exceeding the roughly $35 billion that Singaporean ride-hailing company Grab Holdings Inc. was valued at in a similar deal recently, according to Dealogic. It would have a so-called enterprise value, taking into consideration Universal’s debt, of about $42 billion.
It’s not guaranteed Universal and the SPAC, Pershing Square Tontine Holdings Ltd., /zigman2/quotes/219769662/composite PSTH +0.15% will reach a deal. If they do, it could be finalized in the next few weeks and isn’t subject to any additional due diligence, the people said.
The deal would have a €33 billion ($40 billion) equity value and a €35 billion enterprise value, a measurement that takes into consideration the amount of debt and cash a company has on its balance sheet. Universal, a subsidiary of French media conglomerate Vivendi SE /zigman2/quotes/202179234/delayed FR:VIV +0.08% , is the record label behind artists including Lady Gaga, Taylor Swift, Billie Eilish and the Weeknd.
An expanded version of this report appears on WSJ.com.
Also popular on WSJ.com:
The economic recovery is here. It’s unlike anything you’ve seen.
United plans to buy 15 supersonic planes.
Add to watchlist
PSTH
Add to watchlist
FR:VIV
