Universal Music Group, World’s Largest Music Company, Rejects Ackman’s $65 Billion Takeover Bid. Says Offer Significantly Undervalues Company Value
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Universal Music Group's Board of Directors has rejected a $65 billion all-cash acquisition proposal from Bill Ackman's Pershing Square Capital Management. The board deemed the offer "fundamentally and materially undervalues" the company and is not in the best interests of stakeholders. This decision followed a comprehensive evaluation with external advisors and secured broad support from shareholders and core stakeholders. Ackman, who held a board seat until 2025, had proposed taking the company private and relocating its listing to New York, citing its stagnant share price. A major shareholder, Bolloré Group, also publicly stated the offer significantly undervalued UMG.
Tradingkey - On May 29, the Board of Directors of Universal Music Group, the world's largest music company, issued a statement officially rejecting a $65 billion all-cash acquisition proposal from billionaire Bill Ackman and his Pershing Square Capital Management.
The board explicitly stated that the transaction "is not in the best interests of Universal Music Group, its shareholders, artists, songwriters, employees, and all other stakeholders."
Board of Directors: Offer significantly undervalues the company
In an official statement, the Board of Directors noted that, with the full assistance of top-tier external financial and legal advisors and following a comprehensive and prudent evaluation, it ultimately determined that the acquisition proposal "fundamentally and materially undervalues the intrinsic value of Universal Music Group and fails to deliver superior long-term returns for shareholders." Furthermore, the Board emphasized that it has engaged in extensive communication with a large number of shareholders and core stakeholders, securing broad support and reaching a high level of consensus among all parties regarding the decision to reject the acquisition bid.
Ackman held shares for five years and had proposed moving the listing to New York.
Ackman’s relationship with Universal Music Group (UMG) reportedly dates back to 2021. That year, Pershing Square first acquired a stake in UMG, and Ackman joined the board, serving until he officially stepped down in 2025.
In April this year, Ackman formally submitted a go-private proposal to the board of Universal Music Group. He stated at the time that the company’s long-stagnant share price was primarily due to factors unrelated to the performance of the music business itself, issues he believed could be effectively resolved through the privatization. The most striking element of his proposed restructuring was moving UMG's primary listing from Europe to New York.
Notably, just days before the board officially rejected the buyout proposal, Cyrille Bolloré, CEO of major UMG shareholder Bolloré Group, publicly stated that Ackman’s offer significantly undervalued the world's largest music company.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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