Universal rejects billionaire Bill Ackman's takeover bid
The board said the unsolicited bid would not deliver superior value and pointed to buybacks, Spotify stake sales and stronger disclosure as alternatives.
- On Friday, the Universal Music Group board unanimously rejected an unsolicited $64 billion takeover proposal from Bill Ackman's Pershing Square Capital Management, stating the bid "fundamentally and materially undervalues" the company.
- Ackman, who previously held a UMG board seat, argued the company's stock "languished" due to ownership structure and listing delays, while Cyrille Bolloré, CEO of UMG shareholder Bolloré Group, urged rejection citing undervaluation.
- UMG touted strong performance, including 60% revenue growth and nearly 70% EBITDA growth since 2021, while the board approved doubling its share buyback program to 1 billion euros and monetizing half its Spotify equity stake.
- Board Chair Sherry Lansing expressed "full confidence" in CEO Sir Lucian Grainge, stating the board believes there is "strong consensus" behind declining the bid amid promises of enhanced financial disclosures.
- Grainge added that UMG remains committed to leading the global music industry by attracting top talent and driving innovation, pledging to provide shareholders greater insight so the business can be "better assessed and understood.
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The multinational record company Universal Music Group N.V. announced on Friday, May 29, that its Board of Directors has unanimously determined that the unsolicited and non-binding proposal received from Pershing Square Capital Management, L.P., on April 7, 2026, is not in the best interest of UMG, its shareholders, artists, composers, employees and other interested parties. This undermines the largest operation in the history of the music indus…
The Allegation brings that the proposal "fundamentally and materially undermines the Universal Music Group and would not deliver a higher value creation"
Universal Music Group Rejects Bill Ackman’s $64B Takeover Proposal: “It Fundamentally and Materially Undervalues UMG”
UMG's board of directors said Friday the proposal "is not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders."
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