Universal Music Group Rejects Bill Ackman’s $64.3 Billion Takeover Proposal

Universal Music Group, the global entertainment powerhouse representing stars such as Taylor Swift, Kendrick Lamar, and Sabrina Carpenter, has officially turned down a takeover bid from billionaire investor Bill Ackman. Ackman’s firm, Pershing Square, proposed acquiring the company for $64.3 billion (£48 billion), a move that Universal Music Group’s board of directors has deemed detrimental to the interests of the corporation, its shareholders, artists, fans, and other stakeholders.

In its statement, Universal asserted that the proposed valuation "fundamentally and materially undervalues" the business. The company, which manages prestigious assets including Abbey Road Studios and major record labels like EMI and Island Records, maintains that the offer fails to reflect its true worth. Pershing Square, which already holds a significant stake in Universal, chose not to comment on the rejection.

The investment firm initially announced its bid in April, envisioning Universal as a newly listed entity in the United States. Currently, Universal trades on the Euronext Amsterdam stock exchange. Ackman had argued that the company’s share price had "languished" due to financial complexities unrelated to the core performance of its music business, promising to revitalize the stock value if the takeover proceeded.

Ackman identified specific hurdles to Universal’s market performance, citing an 18% stake held by the Bolloré Group—a family conglomerate led by billionaire Vincent Bolloré—and the company’s recent decision to postpone listing its shares on the New York Stock Exchange. Cyrille Bolloré, the chief executive of Bolloré, had previously opposed the bid, echoing the sentiment that the offer significantly undervalued the music giant.

In response, Universal’s board expressed unwavering confidence in the strategic direction set by Chairman and Chief Executive Sir Lucian Grainge. The board also committed to improving "enhanced financial disclosures" to allow for a more accurate assessment of the company’s value. Grainge reaffirmed the company’s dedication to driving innovation, securing top-tier talent, and strengthening fan engagement to lead the global music sector.

"As we execute our strategy and deliver maximum long-term value, we look forward to providing shareholders with greater insight into the drivers of our performance and future direction of our business," Grainge stated.

The rejection occurs against a backdrop of growing global music revenues, driven by the resurgence of streaming subscriptions that helped the industry recover from years of piracy and financial decline. However, the sector continues to face intense scrutiny regarding royalty payments from streaming platforms. Additionally, the industry is combating the rise of AI-generated "deepfake" songs, where fraudsters impersonate popular artists to flood digital platforms.

Source: BBC News Generated at: 2026-05-29 19:29:12 UTC