WEBVTT - Ackman Proposes Universal Music Merger; Broadcom Rises on Pact With Google; Humana Gets a Little Boost

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 1>Let's take a look at some stacks on the move today.

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<v Speaker 3>Alexis Christophers, good morning. I want to start with a

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<v Speaker 3>Universal Music Group because it's getting a lot of attention today.

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<v Speaker 3>It is up nine percent right now. So billionaire activist

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<v Speaker 3>Bill Ackman has proposed buying Universal Music Group now, just

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<v Speaker 3>to put it in perspective, it's the world's largest music company,

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<v Speaker 3>houses the likes of Taylor Swift, Drake Sabrina Carpenter, the Beatles,

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<v Speaker 3>Bad Bunny, Yep. But for a long time now, Bill

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<v Speaker 3>Ackman has said his Pershing Square Capital Management, which controls

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<v Speaker 3>more than four and a half percent of Universal, has said, look,

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<v Speaker 3>this stock is languishing, that's his word. It's lost more

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<v Speaker 3>than a third of its value in the past couple

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<v Speaker 3>of years. And he said that this hookup would actually

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<v Speaker 3>help to address problems at the company. So he's pushing

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<v Speaker 3>for the company to list here in the US, to

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<v Speaker 3>come off the Amsterdam Stock Exchange, to list at the

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<v Speaker 3>New York Stock Exchange, and he would do this through

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<v Speaker 3>sort of a complex deal through a spac with his

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<v Speaker 3>own company. So we've got shares of Universal Music Group

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<v Speaker 3>a hire on this proposal. Because it is a premium

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<v Speaker 3>of seventy eight percent to the company's closing share price yesterday,

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<v Speaker 3>this deal would value Universal at about sixty five billion dollars.

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<v Speaker 3>So we'll see if what happens. He did though, he

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<v Speaker 3>already proposed names of who he wants to run it.

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<v Speaker 3>Michael Ovitz, remember him, got he's still around president, former president,

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<v Speaker 3>chairman of Disney. He's saying that he would like him

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<v Speaker 3>to help run Universal Music.

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<v Speaker 4>I mean, the problem with these I've covered these companies

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<v Speaker 4>as public companies, these music companies. Nobody knows how to

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<v Speaker 4>value them, and they just languish and they languish, and

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<v Speaker 4>they're just not very public anties.

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<v Speaker 1>They're just not run, I would suggest, respectfully. Yeah, they're

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<v Speaker 1>not run like a business. There's lots of egos involved

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<v Speaker 1>in you know the rest.

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<v Speaker 4>But my sister worked at Universal Music Group. She had

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<v Speaker 4>George Gershwin's piano in her office.

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<v Speaker 3>I was pretty Oh, that's pretty cool. So I think

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<v Speaker 3>I think the perks must be I'd hope they're cool.

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<v Speaker 4>Yeah, it is and they but they chronically underpay people

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<v Speaker 4>because an other people are just dying to work there.

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<v Speaker 2>Well.

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<v Speaker 3>Also a lot of the artists, how are they getting

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<v Speaker 3>paid right cents on the dollar for what they stream?

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<v Speaker 3>It's it's interesting to see where the music where the

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<v Speaker 3>money flows in these companies. I do Broadcom up three

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<v Speaker 3>point three percent, up one hundred and four percent in

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<v Speaker 3>the past year. Why, it's a chip company that's helping

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<v Speaker 3>to power AI. So today it's agreed to produce future

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<v Speaker 3>versions of AI chips for Google. It also signed an

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<v Speaker 3>expanded deal with Anthropic that's going to give the startup

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<v Speaker 3>access to three and a half a gigawatts worth of

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<v Speaker 3>computing capacity. And on top of all that, it's also

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<v Speaker 3>doing a deal with anthropics rival open Ai. By the way,

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<v Speaker 3>anthropics popularity has soared this year. I mean, we've all

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<v Speaker 3>seen it happen, right. It's Claude app has now become

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<v Speaker 3>the top free US app listed in the Apple Maybe.

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<v Speaker 1>Singh just said that you shut up to them, do Claude?

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<v Speaker 1>And I sort of kind of like, haven't. I'm the

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<v Speaker 1>only one who hasn't.

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<v Speaker 3>And then Broadcom it's not giving a dollar amount on

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<v Speaker 3>what these deals might mean for its bottom line, But

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<v Speaker 3>Mizuho did some of the math and they think that

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<v Speaker 3>Broadcom could pick up twenty one billion dollars in a

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<v Speaker 3>high revenue from Anthropic alone this year and forty two

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<v Speaker 3>billion in twenty twenty seven.

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<v Speaker 4>So these are where these numbers come from. But I

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<v Speaker 4>don't know, all right. I mean, man deep singing is

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<v Speaker 4>that he's like his coverage is just large numbers. Only

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<v Speaker 4>covers is large numbers.

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<v Speaker 3>You know what else we see eye popping numbers are

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<v Speaker 3>healthcare system people are healthcare system. So shares of Humana

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<v Speaker 3>jumping ten percent today, but it's not alone because the

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<v Speaker 3>whole sector, including pharma, is moving higher. CBS up seven percent,

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<v Speaker 3>senteen up four percent, and on and on. This is

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<v Speaker 3>because the federal government now says it's going to pay

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<v Speaker 3>insurers in the Medicare program. And increase of two point

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<v Speaker 3>four percent might not sound like a lot, but compared

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<v Speaker 3>to when they were going to offer them, which was

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<v Speaker 3>basically nothing like a flat increase, this is seen as

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<v Speaker 3>a big deal for these companies.

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