Costs Ackman, founder and CEO of Pershing Square Capital Management.
Adam Jeffery|CNBC
— CNBCs Yun Li contributed to this report.
Pershing Square Tontine Holding (PSTH) shares fell more than 8% in prolonged trading after closing Thursday at $25.05. The SPAC IPO was used at $20 a share and it started trading in September 2020.
French media business Vivendi is the bulk owner of Universal Music. Chinese tech company Tencent is a minority stakeholder.
The news came as the SPAC market struck a roadblock on the regulative front as the Securities and Exchange Commission proposed an accounting guideline change that would classify SPAC warrants as liabilities rather of equity instruments. SPAC issuance has decreased drastically after a record first quarter.
Billionaire investor Bill Ackmans blank-check business is closing in on a deal to take Universal Music Group public in what would be the largest unique purpose acquisition company offer ever, a source told CNBCs Leslie Picker on Thursday.
A total of 151 SPAC initial public offerings have actually currently been completed in 2021, raising $47.6 billion, data from SPAC Research reveals. There are 289 deals actively trying to find targets, according to SPAC Research.
The offer would knock Southeast Asias ride-hailing giant Grabs SPAC merger with Altimeter Growth Corp. out of first place. That deal worths Grab at more than $30 billion, according to SPAC Research.
Blank-check companies are normally formed to raise funds through an IPO to finance a merger or acquisition, typically within two years.
The prospective SPAC merger worths Universal Music at roughly $40 billion, according to the source. That would make it the biggest SPAC offer ever, Dealogic data programs.
The proprietary CNBC SPAC 50 index, which tracks the 50 biggest U.S.-based pre-merger blank-check offers by market cap, has actually erased its 2021 gains amidst increased regulatory scrutiny and traded about 4% lower on the year.
