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    UMG   NL0015000IY2

UNIVERSAL MUSIC GROUP N.V.

(UMG)
  Report
Real-time Euronext Amsterdam  -  03:26 2022-09-26 am EDT
18.56 EUR   +0.53%
09/19UNIVERSAL MUSIC N : 1st supplement Euro Medium Term Note Programme Universal Music Group N.V.
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09/16UNIVERSAL MUSIC GROUP N.V. : Corporate officers' Statement : transactions in the company's securities - Purchase
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09/15UNIVERSAL MUSIC GROUP N.V. : Corporate officers' Statement : transactions in the company's securities - Purchase
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Bill Ackman to wind up SPAC, return $4 bln to investors

07/11/2022 | 06:07pm EDT

(Adds more comments from Ackman, and background)

NEW YORK, July 11 (Reuters) - Billionaire investor William Ackman, who had raised $4 billion in the biggest-ever special purpose acquisition company (SPAC), told investors he would be returning the sum after failing to find a suitable target company to take public through a merger.

The development is a major setback for the prominent hedge fund manager who had initially planned for the SPAC to take a stake in Universal Music Group last year when these investment vehicles were all the rage on Wall Street.

In a letter sent to shareholders on Monday, Ackman highlighted numerous factors, including adverse market conditions and strong competition from traditional initial public offerings (IPOs), that thwarted his efforts to find a suitable company to merge his SPAC with.

"High quality and profitable durable growth companies can generally postpone their timing to go public until market conditions are more favorable, which limited the universe of high-quality possible deals for PSTH, particularly during the last 12 months," said Ackman, referring to the ticker symbol for his SPAC.

In July 2020, Pershing Square Tontine raised $4 billion in its initial public offering and wooed prominent investors ranging from hedge fund Baupost Group, Canadian pension fund Ontario Teachers and mutual fund company T. Rowe Price Group.

SPACs, also known as blank-check companies, are publicly-listed shells of cash that are created by large investors - known as sponsors - for the sole purpose of merging with a private company. The process, which is similar to a reverse merger, takes the target company public.

SPACs peaked during 2020 and the early part of 2021, helping rake in paper gains worth hundreds of millions of dollars for a number of prominent SPAC creators like Michael Klein and Chamath Palihapitiya.

However, over the past year, companies that merged with SPACs have performed poorly, forcing investors to shun blank-check deals. That coupled with tighter regulatory scrutiny and a downturn in equity markets have practically shut down the SPAC economy, with several billions of dollars at stake.

Moreover, the record-breaking performance of regular IPOs in the United States in 2021 posed competitive challenges for SPAC sponsors like Ackman, as several richly valued startups chose to list their shares on exchanges through traditional routes instead.

"The rapid recovery of the capital markets and our economy were good for America but unfortunate for PSTH, as it made the conventional IPO market a strong competitor and a preferred alternative for high-quality businesses seeking to go public," Ackman said.

In July last year, Ackman's efforts to take a 10% stake in Universal Music, which was being spun off by French media conglomerate Vivendi, through his SPAC were derailed due to regulatory hurdles. The U.S. Securities and Exchange Commission objected to the deal and Ackman put the investment into his hedge fund instead.

"While there were transactions that were potentially actionable for PSTH during the past year, none of them met our investment criteria," Ackman said. (Reporting by Svea Herbst-Bayliss; Editing by Sriraj Kalluvila and Muralikumar Anantharaman)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
MUTUAL CORPORATION 0.22% 1800 End-of-day quote.158.99%
PERSHING SQUARE HOLDINGS, LTD. -0.16% 30.5 Real-time Quote.-25.67%
THE HOWARD HUGHES CORPORATION -3.98% 58.41 Delayed Quote.-42.61%
UNIVERSAL MUSIC GROUP N.V. 0.49% 18.564 Real-time Quote.-25.48%
VIVENDI SE -0.60% 8.23 Real-time Quote.-30.34%
All news about UNIVERSAL MUSIC GROUP N.V.
09/19UNIVERSAL MUSIC N : 1st supplement Euro Medium Term Note Programme Universal Music Group N..
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09/16UNIVERSAL MUSIC GROUP N.V. : Corporate officers' Statement : transactions in the company'..
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09/15UNIVERSAL MUSIC GROUP N.V. : Corporate officers' Statement : transactions in the company'..
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09/14UNIVERSAL MUSIC GROUP N.V. : Corporate officers' Statement : transactions in the company'..
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09/13Universal Launches New Virgin Music Division in Push for Artists' Partnerships
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09/13Universal Music Group N.V. acquired mtheory Artist Partnerships, bespoke label division..
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09/12TRANSCRIPT : Universal Music Group N.V. Presents at Goldman Sachs Communacopia + Technolog..
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07/27Universal Music Revenue Surges Amid Subscription, Streaming Push
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07/27TRANSCRIPT : Universal Music Group N.V., Q2 2022 Earnings Call, Jul 27, 2022
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More news
Analyst Recommendations on UNIVERSAL MUSIC GROUP N.V.
More recommendations
Financials
Sales 2022 10 169 M 9 887 M 9 887 M
Net income 2022 1 247 M 1 213 M 1 213 M
Net Debt 2022 1 892 M 1 840 M 1 840 M
P/E ratio 2022 27,9x
Yield 2022 2,28%
Capitalization 33 477 M 32 550 M 32 550 M
EV / Sales 2022 3,48x
EV / Sales 2023 3,15x
Nbr of Employees 9 360
Free-Float 51,9%
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Technical analysis trends UNIVERSAL MUSIC GROUP N.V.
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 21
Last Close Price 18,47 €
Average target price 25,43 €
Spread / Average Target 37,7%
EPS Revisions
Managers and Directors
Lucian C. Grainge Co-Chairman & Chief Executive Officer
Boyd Johnston Muir CFO, President-Operations & Executive VP
Judy Sarah Jarman Craymer Co-Chairman
William Lloyd Tanous Chief Administrative Officer & Executive VP
Margaret Frerejean-Taittinger Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
UNIVERSAL MUSIC GROUP N.V.-25.48%32 550
HYBE CO., LTD.-58.74%4 200
CLOUD MUSIC INC.-54.59%1 905
JYP ENTERTAINMENT CORPORATION17.95%1 396
SM ENTERTAINMENT CO., LTD.-0.27%1 234
BELIEVE-52.15%755