Ackman Wants to Flip Universal Music’s Stock to the US

Bill Ackman’s investment firm now owns over 4% of Universal Music Group—the company behind artists like Taylor Swift and Drake—and he thinks moving the Dutch-based label to a US stock exchange could unlock hidden value. His plan involves swapping shares into a US-listed shell company, a move he claims could push UMG’s valuation from around €40 billion today to roughly €56 billion. The key argument? US investors often pay higher prices for similar entertainment stocks, partly because they’re more comfortable with American accounting rules and market liquidity.Critics might ask why this hasn’t happened already. Universal Music has been publicly traded in Europe since 2021, yet its shares still trade near the lower end of industry multiples. Ackman’s bet hinges on perception—if US traders get a clearer view of UMG’s earnings, they might finally reward the company with a premium price. But the plan isn’t risk-free. Reorganizing a global corporation’s stock structure is complex, and past attempts to relist European firms in America have stumbled over regulatory hurdles and investor skepticism.