Vivendi sells 10 percent stake in Universal Music Group to Ackman’s SPAC

Billionaire investor Bill Ackman bought a 10 percent stake in Vivendi’s Universal Music Group for $4 billion, valuing the world’s largest record label — which is home to Drake, Taylor Swift and Billy Eilish — at around $42 billion.

Ackman’s blank-check company Pershing Square Tontine Holdings and Vivendi announced the news on Sunday after weeks of deal talks. UMG, which is being spun off by French parent company Vivendi, still plans to list on the Euronext Amsterdam exchange in late September, the company said. Ackman’s SPAC said it will distribute UMG shares to shareholders “promptly following the completion of the listing.” Vivendi, controlled by French billionaire Vincent Bolloré, is planning to cash in on its lucrative music company by spinning off the entity to existing shareholders.