Guy

Universal's stock initially jumped, but closed on Wednesday shy of €20 a share.

That's below Pershing's projected €30.40 a share offer value, a mixtape of cash and new stock, and suggests folks don't expect it to actually succeed.

Ackman's logic is simple enough.

US stocks trade at richer valuations than European ones, so a New York listing could give Universal a boost.

It's a page out of plenty of playbooks these days, including Korean chipmaker SK Hynix's.

But while a US ticker may widen Universal's investor base, the label will still need to prove it's worth the higher price.

And that's far from guaranteed, whatever Ackman thinks.

Universal's stock is still down nearly 15% over the past year, despite its stable of Taylor Swift-level stars.

Part of the reason is, you guessed it, AI.

Music labels haven't figured out how to turn AI-generated music into a new revenue stream, or how to fend off the existential threat it poses.

See, AI-generated music could weaken the specialness and value of the intellectual property that labels control, so they need to protect their turf if they want to survive.

That's it for today.

I'm Guy, Lana will see you back here tomorrow.

Unlock your potential with Finimize Pro, the ultimate tool for smarter investing.

Stay informed on major market developments and discover the latest investment opportunities with insights from top-tier analysts.

Don't miss a beat.

Download the Finimize app or visit finimize.com to start your free pro trial now.

Upgrade to Finamize Pro, the only thing you need to become a smarter investor.

Get updates on the biggest story-shaping markets and insights on the latest investing opportunities from a team of world-class analysts so you never miss a beat.

Download the Finamize app or head to finamize.com and start your free pro trial today.