Universal Music Group rejects Bill Ackman takeover proposal

In a statement issued on 29 May, UMG's board of directors said it had unanimously concluded that the non-binding proposal, received on 7 April, was “not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders”.

The board said it had conducted a full review of the proposal with the assistance of external financial and legal advisers before reaching its decision.

“After careful review with the assistance of outside financial and legal advisors, the Board has rejected the proposal because it fundamentally and materially undervalues UMG and will not deliver superior value creation,” the company said.

The board added that it had consulted shareholders and other stakeholders and believed there was “a strong consensus” supporting the rejection.

Board backs current leadership

UMG Board Chair Sherry Lansing expressed confidence in the company's leadership and long-term strategy.

“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,” Lansing said.

UMG chairman and CEO Sir Lucian Grainge said the company would continue focusing on talent development, fan engagement and innovation.

“We remain committed to leading the industry by attracting the world's top talent, deepening fan engagement globally, and driving innovation,” Grainge said. “Central to that mission is fostering an environment that champions human creativity, protects artists, songwriters, and entrepreneurs, and expands opportunities for growth and success.”

He added that the company would provide investors with greater insight into its business performance and future strategy.

Bolloré opposed bid

The rejection follows public opposition to the proposal by Cyrille Bolloré, chairman and chief executive of the Bolloré Group, UMG's largest shareholder.

Speaking at the Bolloré Group's annual shareholders' meeting on 27 May, Bolloré urged UMG management to reject the offer.

“I encourage the management of Universal Music to reject it,” he said. “As far as I am concerned, it is as if it has been rejected.”

Bolloré also questioned the valuation attached to the proposal. “We think the price is not there at all,” he said.

Details of the proposal

Pershing Square's proposal valued UMG at approximately €55.8 billion (about $64.4 billion), or €30.40 per share, representing a reported 78% premium to the company's share price before the bid became public.

Under the proposed transaction, shareholders would have received a combination of cash and shares in a newly structured company.

The plan also included relocating the combined entity's incorporation to Nevada in the United States and transferring its primary stock market listing from Euronext Amsterdam to the New York Stock Exchange.

Ackman argued that a US listing would increase access to institutional investors that are unable to invest in non-US listed companies.

However, he previously acknowledged that any transaction would require support from the Bolloré Group, which controls approximately 28% of UMG through direct and indirect holdings.

Strong financial performance

UMG highlighted its recent financial performance and strategic initiatives as evidence of its long-term growth prospects.

The company reported first-quarter 2026 revenue of €2.9 billion, representing an 8.1% year-on-year increase at constant currency.

It also recently announced plans to sell half of its equity stake in Spotify, generating approximately US$1.4 billion to support an expanded share buyback programme.

According to UMG, the company has grown revenue by 60% and adjusted EBITDA by nearly 70% since becoming a publicly listed company in 2021. It also reported achieving its highest recorded music market share in 12 years during 2025.

The company said it would continue reviewing its business and financial strategy while pursuing initiatives aimed at enhancing shareholder value and strengthening its position in the global music industry.