In a statement released on November 9, 2024, Universal Music Group (UMG) addressed the recent post by Bill Ackman of Pershing Square regarding the company's potential listing in the United States. UMG clarified its position on the matter, emphasizing its commitment to acting in the best interests of all its shareholders.

Navigating the Complexities of a Potential US Listing

Contractual Obligations and Shareholder Interests

UMG acknowledged that Pershing Square has the contractual right to request a US listing, provided that a Pershing entity sells at least $500 million in UMG shares as part of the process. However, the company emphasized that Pershing does not have the authority to compel UMG to become a US-domiciled company or delist from Euronext Amsterdam. UMG stated that while it will endeavor to comply with its contractual obligations regarding the US listing process, any decisions beyond those necessary to fulfill the contract will be based on a thorough analysis to ensure value maximization and the best interests of all shareholders.

Maintaining a Global Presence

UMG's statement underscores the company's commitment to its global footprint and the importance of preserving its current listing on the Euronext Amsterdam exchange. The company recognizes the value of its international presence and the benefits it brings to its shareholders. By carefully considering the implications of any potential changes to its domicile or listing status, UMG aims to strike a balance between fulfilling its contractual obligations and upholding the long-term interests of its diverse shareholder base.

Prioritizing Shareholder Value

At the core of UMG's response is a steadfast focus on maximizing shareholder value. The company emphasizes that any decisions or actions beyond those necessary to comply with the Pershing Square contract will be based on a comprehensive analysis that takes into account the best interests of all shareholders. This approach underscores UMG's commitment to transparent and responsible governance, ensuring that the interests of its diverse investor base are prioritized in the decision-making process.

Navigating the Complexities of Shareholder Demands

The statement from UMG highlights the delicate balance that publicly traded companies must strike when navigating the demands of influential shareholders. While respecting contractual obligations, UMG is also mindful of the need to maintain its global presence and make decisions that align with the long-term interests of all its shareholders. This careful balancing act demonstrates the company's commitment to responsible stewardship and its unwavering focus on creating sustainable value for its investors.

Fostering Transparency and Accountability

By proactively addressing Pershing Square's post and clarifying its position, UMG is demonstrating its commitment to transparency and accountability. The company's willingness to engage with its shareholders and provide clear communication on important matters underscores its dedication to maintaining open and constructive dialogues. This approach not only fosters trust among investors but also reinforces UMG's reputation as a well-governed and shareholder-focused organization.