Universal Music Group to Dual-List Shares on U.S. Exchange in 2025
Pershing Square Holdings plans to sell part of its 7.6% stake in UMG, with the goal of listing it on a U.S. exchange by September.
Bill Ackman, the head of Pershing Square Holdings, will not achieve his goal of having Universal Music Group (UMG) de-listed from the Euronext Amsterdam exchange. However, his push for a U.S. listing for the company will be realized in 2025.
On January 15, UMG announced that Pershing Square and its affiliates have requested the company pursue an offering and listing on a U.S. stock exchange, waiving the 120-day filing requirement. In line with its contractual commitments, UMG said it would make “commercially reasonable efforts” to launch an underwritten offering to sell certain shares held by Pershing Square by September 15, 2025. Pershing Square currently holds a 7.6% stake in UMG, valued at $3.48 billion.
The company’s statement also clarified that decisions beyond fulfilling these contractual obligations will be made by UMG’s board, based on what maximizes value for all shareholders.
In November 2024, following violent attacks on Israeli soccer fans in Amsterdam, Ackman, who is also a UMG board member, advocated for UMG to de-list from the Euronext Amsterdam exchange, where it has traded since its spin-off from Vivendi in 2021. He suggested moving UMG’s legal headquarters to the U.S. Pershing Square then sought approval to delist its own shares from Euronext Amsterdam, a request that was granted on January 2. Pershing Square will officially de-list on January 31, but its stock will remain listed on the London Stock Exchange.
Ackman argued on social media that leaving a jurisdiction that fails to protect tourists and minority populations aligns with both business and moral principles. He also emphasized that Pershing Square would exercise its “contractual right” to ensure UMG’s U.S. listing by next year.
In response, UMG clarified that Pershing Square could request a U.S. listing, but could not impose additional terms. As outlined in UMG’s listing prospectus, Pershing has the right to request a U.S. listing as long as at least $500 million of UMG shares are sold as part of the offering. However, Pershing cannot require UMG to move its legal domicile to the U.S. or de-list from Euronext Amsterdam.
Dual listings, where companies are publicly traded in multiple countries, are common, as they provide access to a broader pool of investors and protect against changes in regulations in any one country. Tencent Music Entertainment, for example, is listed in both the U.S. and Hong Kong.
