Universal Music board rejects Bill Ackman’s €55.7 billion takeover bid

AMSTERDAM: Universal Music Group (UMG) has unanimously rejected an unsolicited takeover proposal from billionaire investor Bill Ackman’s Pershing Square Capital Management, saying the offer significantly undervalued the company and failed to serve the interests of shareholders, artists, songwriters and employees.

The board announced on Thursday that it had spent weeks reviewing the non-binding proposal submitted by Pershing Square on April 7 before deciding it was not the right path forward for the world’s largest music company.

Ackman had proposed a cash-and-stock transaction through a Pershing Square acquisition vehicle that valued UMG at roughly €55.75 billion, or about €30.40 per share. The hedge fund manager argued that taking the company private could unlock value and address what he viewed as a disconnect between UMG’s market value and its underlying business performance.

However, UMG’s board concluded that the proposal “fundamentally and materially undervalues” the company and would not deliver superior value creation compared with its current strategy.

The decision was also backed by many shareholders and stakeholders, according to the company. UMG’s largest individual shareholder, Bollore, had reportedly urged the board to reject the proposal.

The rejection marks the latest chapter in Ackman’s long-running interest in the music giant. In 2021, he attempted to acquire a stake in UMG through a special purpose acquisition company structure, but the plan was abandoned following regulatory scrutiny in the United States. Pershing Square later became a major shareholder in UMG, while Ackman served on the company’s board until 2025.

The company behind chart-topping artists including Taylor Swift, Billie Eilish and Kendrick Lamar has recently taken several steps aimed at boosting shareholder value. These include launching and expanding a share buyback programme, announcing plans to monetise half of its stake in Spotify, and committing to enhanced financial disclosures to provide investors with a clearer view of its business.

Universal is also expected to shift its primary stock market listing from Amsterdam to New York, a move that could broaden its investor base and improve liquidity by attracting additional institutional and index-fund investors.

UMG chairman of the board Sherry Lansing said the company had built an “unrivalled position” through strong execution and long-term vision.

“UMG has built an unrivalled position in the music industry through clear vision and strong execution. The Board has full confidence in Sir Lucian and his team’s ability to deliver sustainable growth and continued value creation for all stakeholders,” said UMG chairman of the board Sherry Lansing.

The board pointed to the company’s performance since its 2021 listing as evidence that its current strategy is working. During that period, UMG says revenue has risen by 60 per cent while adjusted EBITDA has grown by nearly 70 per cent. The company also increased its share of the global recorded music and music publishing markets to multi-year highs in 2025.

UMG chairman and chief executive officer Lucian Grainge said the company remained focused on attracting top talent, expanding fan engagement and leading the industry in areas such as streaming innovation and responsible artificial intelligence adoption.

As streaming revenues continue to grow and music rights become increasingly valuable assets, UMG appears determined to stay on its current course. For now, the board’s message to Ackman is clear: the company believes its greatest hits are still ahead, and it does not need a takeover to find the right rhythm.