Universal Music Group on Friday rejected a $65 billion takeover offer from Bill Ackman’s Pershing Square Capital, arguing the bid “undervalues” the music giant, following opposition from its largest billionaire-backed shareholder.
The offer “fundamentally and materially undervalues” the company, UMG’s board said.
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UMG’s board of directors said it evaluated Pershing Square’s offer and determined it “fundamentally and materially undervalues UMG and will not deliver superior value creation.”
Ackman’s offer for UMG, which houses artists like Taylor Swift, Kendrick Lamar and Billie Eilish, among others, was rebuffed earlier this week by major shareholder Bolloré Group, whose chief executive Cyrille said the bid was “absolutely not high enough” and disputed whether Ackman was “compatible with the management” of the business.
UMG’s board said it believed there was a “strong consensus” supporting its decision among shareholders and other stakeholders.
Ackman announced Pershing Square’s offer for UMG in April, pointing to a decline in the company’s stock price that Ackman blamed on “a combination of issues that are unrelated to the performance of its music business.” The offer valued UMG at $35.13 per share and would merge the record label with Pershing Square SPARC Holdings, move UMG’s primary stock listing from Amsterdam to the New York Stock Exchange. Ackman previously claimed the Bolloré Group was “intrigued” by his offer, but noted without the shareholder’s support, “we don’t have a transaction.”
Ackman has expressed interest in UMG for years, announcing in 2021 that he would purchase a 10% stake in the firm. He sat on UMG’s board of directors until he resigned in 2025, citing other commitments, but during his short tenure, he urged UMG to move its stock listing to New York, arguing it traded at a discount because the stock was not traded in the U.S. UMG’s stock has steadily declined in recent years, falling by more than 30% over the last year, and reported rising content and operating costs through its latest quarter as earnings fell below expectations.
Ackman, who created Pershing Square in 2004, has an estimated net worth of $8.9 billion as of Friday. Vincent Bolloré—father to Cyrille Bolloré—and his family have a net worth of $10.5 billion, according to Forbes’ estimates.
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