Universal Music Rejects Bill Ackman’s $64.3 Billion Takeover Bid

BBC Business reported Friday that Universal Music Group has formally rejected a $64.3 billion takeover approach from billionaire Bill Ackman‘s investment firm Pershing Square. The Universal Music takeover proposal was dismissed as contrary to the interests of shareholders, artists, and fans alike.

Board Says Bid Falls Far Short of True Value

Universal’s board concluded that the Pershing Square offer materially and fundamentally undervalued the business. The company houses a formidable roster of talent including Taylor Swift, Sabrina Carpenter, and Kendrick Lamar. It also owns storied labels such as EMI and Island Records, and operates Abbey Road Studios in London. Pershing Square, which already holds a stake in Universal, declined to respond publicly to the rejection.

Ackman’s Original Case for the Deal

Ackman launched the takeover bid in April, framing it as a rescue plan for a company whose share price had, in his view, stagnated for reasons unrelated to the strength of its music business. He pointed specifically to two headwinds. The first was an 18% shareholding held by Bolloré Group, the conglomerate controlled by French billionaire Vincent Bolloré. The second was a delayed plan to list Universal’s shares on the New York Stock Exchange. Universal currently trades on Euronext Amsterdam. Ackman’s proposal would have restructured the company and relisted it in America. Bolloré Group chief executive Cyrille Bolloré had already signalled opposition to the bid, arguing it underpriced the business.

Grainge Pledges Greater Transparency

Universal chief executive and chairman Sir Lucian Grainge said the company’s focus remains on leading the global music industry through continued signings, innovation, and deeper fan engagement. The board expressed full confidence in his strategy. In a notable concession to investor concerns, Universal also promised enhanced financial disclosures going forward. The aim is to give shareholders clearer visibility into performance drivers and future direction. That pledge suggests the board is aware that its valuation argument needs to be better evidenced in public markets.

Industry Backdrop

The rejection lands at a complex moment for the broader music business. Streaming subscriptions have restored revenue growth after years of losses to piracy. But the industry faces fresh disruption from AI-generated deepfakes flooding platforms with imitation tracks. Royalty disputes between labels and streaming services also remain unresolved. Universal’s ability to command a premium valuation will depend partly on how it navigates both challenges.

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