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Universal Music snubs Pershing Square's $64.3bn offer
Universal Music Group (UMG) has formally declined a $64.3 billion takeover proposal from billionaire investor Bill Ackman's Pershing Square Holdings, calling the bid "not in the best interests" of the company, its shareholders, artists, and fans.
Board calls bid a 'fundamental undervaluation'
In a statement released late Friday, UMG's board asserted that Pershing Square's offer "fundamentally and materially undervalues" the world's largest music company. UMG owns iconic labels such as EMI and Island Records and operates Abbey Road Studios.
Pershing Square, which already holds a stake in UMG, declined to comment on the rejection.
Bid launched in April amid share-price concerns
Ackman unveiled the unsolicited bid in April, proposing to list UMG as a new entity in the United States. The company is currently traded on Euronext Amsterdam.
At the time, Ackman argued that UMG's share price had "languished" due to structural issues unrelated to its core music operations. He cited an 18% stake held by Bolloré Group, the French conglomerate controlled by billionaire Vincent Bolloré, as a key obstacle. Bolloré's CEO, Cyrille Bolloré, had publicly opposed the bid, echoing UMG's stance that the offer undervalued the company.
Ackman also pointed to UMG's delayed plans to list on the New York Stock Exchange as a factor weighing on its valuation.
UMG reaffirms long-term strategy under Grainge
UMG's board expressed full confidence in the leadership of Sir Lucian Grainge, the company's chairman and CEO. Grainge emphasized UMG's commitment to innovation, signing top talent, and strengthening fan engagement.
"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."
Sir Lucian Grainge, Chairman and CEO, Universal Music Group
The company also pledged to enhance financial disclosures to help investors better assess its value.
Industry backdrop: Growth amid challenges
Global music revenues have rebounded in recent years, fueled by the rise of streaming subscriptions, which offset declines from piracy and physical sales. However, the industry faces ongoing debates over royalty payouts from streaming platforms.
Another pressing issue is the surge in AI-generated deepfakes-songs created by fraudsters impersonating artists-which are increasingly flooding digital platforms.
