Pershing Square Makes $64 Billion Bid for Universal Music Group

Bill Ackman’s Pershing Square has submitted a non-binding bid to acquire Universal Music Group (UMG).

Strategic rationale:

• Ackman says UMG is undervalued despite strong operating performance.

• Though praising the job Chairman & CEO Sir Lucian Grainge and management have done building UMG's artist roster and “generating strong business performance,” Ackman claims the stock price has “languished due to a combination of issues that are unrelated to the performance of its music business.”

• “Importantly,” he adds, “all of them can be addressed with this transaction.”

The issues:

• Ackman highlights several factors that have contributed to UMG’s stock decline.

• They include uncertainty around the Bolloré Group’s 18% stake in the company; the postponement of UMG’s US listing; an underutilized balance sheet; limited investor communication and transparency; and a lack of investor credit in UMG’s valuation for its €2.7 billion stake in Spotify.

Valuation and structure:

• As Proactive Investors explains, under the proposal UMG shareholders would receive €30.40 per share, a 78% premium to UMG’s stock price, and 0.77 shares “in the new entity for each share held.”

• UMG would merge with Pershing Square SPARC Holdings, Ltd.

• The combined entity would incorporate as a Nevada corporation and list on the New York Stock Exchange, as per Music Business Worldwide.

Context:

• Pershing Square acquired approximately 10% of UMG from Vivendi in 2021.

• Ackman resigned from the Board in May 2025 citing obligations from recent investments.

• As Music Business Worldwide explains, he has “long advocated” for a US listing of UMG, believing it “would unlock demand from institutional investors unable to purchase non-US-listed securities and improve analyst coverage.”