William Ackman SPAC Nears $40 Billion Universal Music Deal

Hedge fund billionaire William Ackman’s purpose-built acquisition agency is on the verge of a take care of Universal Music Group that might worth the world’s largest music firm at about $ 40 billion, individuals conversant in the matter mentioned.

Both sides confirmed the negotiations early Friday, the day after the Wall Street Journal first reported on the talks. Neither aspect gave particulars of how far the discussions had progressed.

A deal, if carried out, can be the most important SPAC deal ever and would exceed the roughly $ 35 billion that Singaporean ridesharing firm Grab Holdings Inc. not too long ago valued on the same deal, in response to Dealogic. It would have a so-called enterprise worth of roughly $ 42 billion, together with Universal’s debt.

There is not any assure that Universal and SPAC, Pershing Square Tontine Holdings Ltd. will attain an settlement. If so, it could possibly be accomplished within the subsequent few weeks and would not require any extra due diligence, individuals mentioned.

The deal, which might give Mr. Ackman’s firms a 10% stake in a newly listed Universal, would have an fairness worth of $ 33 billion, or $ 40 billion, and an enterprise worth of $ 35 billion, a valuation that’s the quantity of Debt and money that an organization has on its steadiness sheet.

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