iWorld
NDS seeks dismissal of Canal+ suit
Rupert Murdoch’s television security unit NDS on Monday asked a federal judge to dismiss the $ 1 billion hacking lawsuit filed against it last month by rival Canal+ Group and its subsidiaries.
The move comes close on the heels of the San Francisco district court judge who is hearing the dispute agreeing to an accelerated discovery period in the case. The lawyers from both sides were to begin working out a schedule for each to review the other’s documents and other relevant materials.
Canal+, the television security arm of troubled French media giant Vivendi Universal, said yesterday it would oppose the dismissal motion.
In what was essentially a string of technical arguments, NDS, while urging that the case be thrown out, said if any portion of the lawsuit is permitted to proceed, it should be transferred to the federal district court in Santa Ana, California where it belongs.
NDS’ motion claims that Canal+’s complaint does “not belong in the Northern District of California” because Canal+’s allegations have “no connection whatsoever to this District.” The motion asked the court to transfer the lawsuit to the Southern Division of the United States District Court for the Central District of California because defendant NDS Americas Inc. is located there, according to an official release.
Canal Plus, which operates a pay-TV service and whose technology arm designs security measures to keep the signal from being pirated, claimed in the suit that NDS engineers had hacked its security system and then made the relevant codes available for hackers on the Internet. NDS makes similar TV security systems, and NDS has claimed that Canal Plus is using the suit to deflect attention from alleged shortcomings in its own technology.
Both motions are scheduled to be heard on 30 May.
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
