Pershing Square submitted a non‑binding cash‑and‑stock proposal to buy Universal Music Group at €30.40 per share, a 78% premium.
The offer includes €5.05 cash per share (€9.4 bn total) and 0.77 new‑entity shares, cancelling about 17% of UMG’s shares.
Funding comprises €2.5 bn equity, €5.4 bn new debt, and €1.5 bn net proceeds from selling UMG’s Spotify stake after taxes.
Barclays questions the 25× P/E valuation, forecasting lower 2027 EPS and noting UMG’s weak cash conversion versus peers.