Vivendi Agrees to Sell 10% of Universal to William Ackman

By Anne Steele

Vivendi SE on Sunday reached an agreement for a 10% investment in Universal Music Group by William Ackman's Pershing Square Tontine Holdings, valuing the world's largest music company at about $40 billion.

In an email to UMG employees, CEO Lucian Grainge called the investment a "strong validation." The deal--previously reported on by the Wall Street Journal--follows a 20% stake investment by Chinese internet giant Tencent and comes days before Vivendi shareholders will vote on the potential listing of 60% of UMG shares on the Euronext Amsterdam stock exchange.

"The fact that we now have, in addition to Vivendi, two committed investors--the consortium led by Tencent, as well as PSTH--is as powerful an endorsement as one could imagine from the investment and technology communities," said Mr. Grainge.

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(END) Dow Jones Newswires

06-20-21 1959ET