The combined entity is said to be valued at around $ 40 billion, said the people, who asked not to be identified because the talks are private. Discussions are ongoing and talks could still fail, they said.

Ackman’s special purpose acquisition firm, called Pershing Square Tontine Holdings Ltd., raised $ 4 billion in an initial public offering in July – a record amount for a SPAC. These companies go public and then find promising companies to merge with. Ackman, a hedge fund manager, said his company was looking for a “mature unicorn.”

“We’re in a unicorn mating dance and we want to marry a very attractive unicorn on the other side that matches our characteristics,” he said in an interview with Bloomberg Television at the time. “And we designed ourselves to be a very attractive partner.

For Vivendi, the agreement would transform Universal Music Group into a public company without an IPO. The French media giant had already mentioned the possibility of separating by the end of the year. UMG is the world’s largest music company, with artists including Taylor Swift, Drake, and Billie Eilish.

The music industry has rebounded from a decade of recession thanks to increased revenues from streaming services, and Vivendi is keen to unlock more value from UMG, especially after suffering a decline in its advertising and marketing operations. ‘editing.

The IPO could also give UMG more financial leverage to compete with rivals Warner Music Group Corp. and Sony Music Entertainment. Vivendi originally planned an IPO for UMG in 2023, but said earlier this year that it now aims for an IPO of the company by the end of 2021.

Representatives for Pershing Square and UMG declined to comment. The Wall Street Journal previously reported on the discussions.

The potential deal does not appear popular with investors. Shares of Pershing Square Tontine Holdings fell as much as 14% at the end of Thursday, but fell back to around 6%.

Burger King

Ackman is a veteran of using blank check companies to close business. He previously co-founded Justice Holdings Ltd., which raised $ 1.44 billion on a 2011 listing in London. It merged with Burger King Worldwide Inc. in 2012.

Read more: How SPAC surge benefits targets who can play the waiting game

The number of PSPCs has skyrocketed over the past year, creating a global hunt for suitable targets. The companies raised $ 109.5 billion through PSPC’s IPOs this year through May, up from $ 9.74 billion a year ago, according to data compiled by Bloomberg.

When discussing the potential goals of his current PSPC last year, Ackman said he wanted a “simple and predictable” cash flow business.

“We are looking for the super sustainable growth business that we can own for the next decade,” he said.

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This notice was published: 2021-06-04 03:03:49


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