I love my shiny new medal, LLR
- 90d 17h 49m
This was put out three weeks ago. Right about the time Ackman announced the possible deal in the works.
I have orders in to buy more at 21.50 and see if they pop. The more I see of the financials the more I am considering it. Honestly a cash cow music catalog that can jump on to NFTs and maybe its own version of Spotify and cut them out of the catalog would actually slot as a hedge against my tech heavy portfolio. Profit margins are about 19% which isnt shitty. The NFT thing could really be a goldmine if they go aggressively into it with all the IP they have.Will be interesting to see what happens tomorrow
This more-than-doubling of Spotify’s public valuation is good news for Universal Music Group. As previously reported by MBW, a financial filing by Spotify in Europe dating back to 2008 shows that Universal acquired a 5% stake in the streaming company’s launch phase, with EMI – later itself acquired by UMG – taking 2%.
Universal’s subsequent 7% share is believed to have been cut in half over the years due to dilution caused by SPOT’s fund-raising, giving UMG an approximate 3.5% stake in Spotify today.
That 3.5% stake was worth $759m on March 16. Today, it’s worth over $1.6bn.
I didn't see they owned a stake in SPOT. TenCent owns a portion of UMG already.I had GTC orders set for 22 and 21.50 for months. Neither executed in the panic, as I hadn't set to GTC-EXT. #sadpanda
This seems like a solid deal to me. Devil will be in the details for valuation / % ownership etc.
Sanrith Descartes to your above comment: Been reading UMG has some crazy $2B ownership stake in Spotify already.
PSTH shareholders will own three separately traded securities following the completion of the Transaction and the issuance of rights by SPARC:
(1) their pro‐rata share of UMG Ordinary Shares, which at cost, including transaction expenses, represents approximately $14.75 per PSTH share, before accounting for any dilution from PSTH Distributable Redeemable Warrants (the “Redeemable Warrants”);
(2) their pro‐rata share of PSTH after the distribution of the acquired UMG shares (“PSTH Remainco”), which will have approximately $5.25 in cash per share, before accounting for any dilution from PSTH Distributable Redeemable Warrants; and
(3) one transferable five‐year right per share (a “SPAR”) of Pershing Square SPARC Holdings, Ltd. (“SPARC”), which is expected to trade on the New York Stock Exchange.