Universal Music Rejects Bill Ackman’s $64.3 Billion Takeover Proposal
Universal Music Group has turned down a $64.3 billion takeover proposal from investment firm Pershing Square Capital Management, describing the offer as significantly below the company’s true value.
The entertainment giant, home to global stars such as Taylor Swift, Sabrina Carpenter and Kendrick Lamar, said the proposal did not serve the interests of its shareholders, artists, fans, or broader stakeholders.
In a statement, Universal argued that the bid materially undervalued its business and future growth prospects. The company oversees some of the music industry’s most recognizable assets, including Abbey Road Studios and major record labels such as EMI and Island Records.
The offer was made by billionaire investor Bill Ackman, whose firm already holds a stake in Universal. The proposal, announced in April, would have resulted in the company being restructured and listed in the United States. Universal is currently traded on the Euronext Amsterdam exchange.
Ackman had argued that Universal’s stock market performance had not reflected the strength of its underlying business. He pointed to factors such as the sizeable shareholding held by the Bolloré Group and delays surrounding a potential New York listing as reasons for the company’s valuation challenges.
However, the proposal faced resistance from key stakeholders, including Bolloré Group Chief Executive Cyrille Bolloré, who also maintained that the offer failed to reflect Universal’s true worth.
Universal’s board reaffirmed its confidence in the leadership of Chairman and Chief Executive Officer Lucian Grainge. The company also pledged to provide investors with more detailed financial disclosures in the future to improve transparency and help the market better understand its long-term value.
Grainge said Universal remains focused on expanding its position as a global music leader through innovation, artist development, and stronger fan engagement.
The decision comes at a time when the global music industry continues to benefit from the growth of streaming subscriptions, which have helped drive revenue growth in recent years. However, the sector also faces ongoing challenges, including debates over royalty payments and the increasing spread of AI-generated deepfake music that imitates established artists.
