Universal Music Group has rejected a takeover offer worth $64.3 billion from billionaire Bill Ackman’s investment firm.
The company said the proposal does not reflect its true value and is not in the best interests of shareholders, artists and fans.
Universal Music Group, one of the world's largest music companies, has turned down a takeover bid from Pershing Square. The company is home to major artists such as Taylor Swift, Sabrina Carpenter and Kendrick Lamar.
We decided to sell a portion of our UMG position today. UMG has substantially outperformed the rest of our portfolio (other than the GSEs) year to date in light of its extremely strong recent results.
UMG was our largest position going into the day at more than ~27% of our…— Bill Ackman (@BillAckman) March 13, 2025
It also owns famous music labels, including EMI and Island Records, and operates Abbey Road Studios.
The offer was made in April by Pershing Square, which already owns a stake in Universal. The deal would have moved the company to a new listing in the United States. Universal is currently listed on the Amsterdam stock exchange.
However, Universal's board said the offer significantly undervalues the business. The company stated that the proposal would not benefit shareholders, artists, fans or other stakeholders.
Bill Ackman argued that Universal's share price has struggled because of factors unrelated to its music business. He pointed to the large stake held by Bollore Group and the delay in listing shares on the New York Stock Exchange as key issues.
Bollore Group, led by Cyrille Bollore, also opposed the offer. The company said the bid did not properly reflect Universal's value.
Universal's board expressed full confidence in its leadership team. It said the company remains focused on long-term growth under Chief Executive Sir Lucian Grainge.
The company also promised to provide more financial information in the future to help investors better understand its performance.
Grainge said Universal will continue to invest in new talent, support innovation and strengthen its relationship with fans around the world. He added that the company remains committed to creating long-term value for shareholders.
The global music industry has grown steadily in recent years. Streaming services have helped increase revenue after years of losses caused by piracy. At the same time, the industry continues to face challenges.
These include concerns about artist payments from streaming platforms and the growing number of AI generated deep fake songs that imitate real artists.
