UMG’s Board of Directors said today (May 29) that it has “unanimously determined that the unsolicited and non-binding proposal” it received from Pershing Square Capital Management on April 7, 2026, is “not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders”.
The Board said it has “taken the time to fully assess the proposal submitted by Pershing Square”.
It added: “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 Board has heard from many of UMG’s shareholders and other stakeholders and believes there is a strong consensus supporting the Board’s decision”.
Sherry Lansing, Chairman of the Board, UMG said: “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.”
Credit: Austin Hargrave
“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 Chief Executive Officer, UMG added: “We remain committed to leading the industry by attracting the world’s top talent, deepening fan engagement globally, and driving innovation.
“Central to that mission is fostering an environment that champions human creativity, protects artists, songwriters, and entrepreneurs, and expands opportunities for growth and success.
“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.”
“I encourage the management of Universal Music to reject it,” Bolloré told the Bolloré Group‘s annual shareholders meeting on Wednesday (May 27).
“As far as I am concerned, it is as if it has been rejected.”
“We think the price is not there at all,” Bolloré said.
“He is not making an offer with his own money,” he added. “It is our money, the company’s money.”
At the meeting, Bolloré described the next five to six years as critical for UMG to capitalize on superfan subscriptions, live music, geographic expansion, and merchandising.
He acknowledged that Ackman “was a very smart investor” who had raised “interesting” points on cash allocation and the opportunities presented by AI.
Pershing Square‘s non-binding proposal, unveiled in April, valued UMG at approximately €55.8 billion ($64.4 billion), or €30.40 per share – a 78% premium to the company’s closing price on April 2.
Under the terms, shareholders would have received €9.4 billion in cash and 0.77 shares of new stock for each UMG share held.
The plan would have merged UMG with Pershing Square SPARC Holdings, with the combined company incorporating in Nevada and shifting its primary listing from Euronext Amsterdam to the New York Stock Exchange.
Ackman argued the move would unlock demand from institutional investors unable to buy non-US-listed securities.
UMG had put its own plans for a US secondary listing on hold in March 2026, citing turbulent market conditions.
The billionaire investor had also acknowledged that the deal hinged on Bolloré‘s support.
“Without Bolloré, we don’t have a transaction,” Ackman told investors when he presented the bid, adding that his first call before launching the proposal had been to the Bolloré Group.
Ackman described that initial response as “music to my ears.”
The Bolloré Group controls 28% of UMG via a direct stake in the music company plus its holding in Vivendi.
Pershing Square first acquired approximately 10% of UMG from Vivendi in the summer of 2021, and Ackman sat on the company’s board until May 2025.
Ackman has since sold down part of that position, including a 2.7% stake in March 2025.
Cyrille Bolloré stepped down from UMG‘s board in July 2025 to focus on his role at the Bolloré Group.
Alongside those results, the company said it would sell half of its equity stake in Spotify, generating around $1.4 billion to help fund an expanded share buyback program.
Ackman‘s proposal had envisaged liquidating UMG‘s entire Spotify stake to help fund the cash portion of the bid.
Elsewhere in the statement today, UMG said: “As a company operating in a fast-evolving sector, UMG and its Board continuously assess the company’s business and financial strategy.
“The company recently initiated and subsequently expanded its buyback program, announced plans to monetize half of its Spotify equity stake, and announced it would provide the market with enhanced financial disclosure so that its business can be better assessed and understood. These are topics the Board and management have been considering for several months, and which will remain under continuous review.”
It added: “UMG has consistently led the industry, particularly since becoming a listed company in 2021. This has included pioneering an artist-centric approach to Streaming 2.0, underpinned by new agreements with digital service providers and leading the market in a responsible approach to the use of artificial intelligence. Also since listing, UMG has grown revenue by 60% and Adjusted EBITDA by nearly 70%(1), while sustaining healthy returns on equity. In 2025 UMG achieved a 33% share in recorded music, its highest share in 12 years, and a 24% share in music publishing, the highest share UMG has achieved since Music & Copyright started tracking market share in 2010. For the third consecutive year, in 2025 UMG artists held 9 of the top 10 positions on the annual IFPI Global Artist Chart.”
Citi is acting as financial advisor to the UMG Board of Directors, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and De Brauw Blackstone Westbroek N.V. are acting as legal advisors to the UMG Board of Directors.Music Business Worldwide
Universal Music Group (UMG) has officially rejected a takeover offer from Bill Ackman’s Pershing Square Capital Management. On May 29, 2026, UMG’s Board of Directors stated they had “unanimously determined” that the unsolicited and non-binding proposal from Ackman, submitted on April 7, 2026, was “not in the best interests” of the company or its stakeholders, including shareholders, artists, songwriters, and employees.
After a thorough assessment with external financial and legal advisors, the Board concluded that Ackman’s proposal fundamentally undervalued UMG and would not lead to superior value creation. The Board also noted that they had received strong consensus from UMG’s shareholders and stakeholders in support of their decision.
Sherry Lansing, the Chairman of the Board, emphasized UMG’s strong position in the music industry, attributing its success to clear vision and effective execution. She expressed confidence in the leadership of Sir Lucian Grainge and his team in delivering sustainable growth and value creation for all UMG stakeholders. Grainge reinforced this commitment, stating UMG aims to lead the industry by attracting top talent, enhancing fan engagement, and driving innovation while fostering an environment that supports creativity and protects the rights of artists and songwriters.
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The rejection of Ackman’s proposal came shortly after Cyrille Bolloré, chairman and CEO of the Bolloré Group and UMG’s largest single shareholder, publicly advised UMG’s management to dismiss the offer. At a Bolloré Group annual shareholders’ meeting, he characterized the offer as undervalued and emphasized that Ackman was not using his own money for the proposal but rather the shareholders’ funds. Bolloré described the next five to six years as critical for UMG, highlighting opportunities in superfan subscriptions, live music, geographic expansion, and merchandising.
Ackman’s proposal, made in April, valued UMG at approximately €55.8 billion ($64.4 billion), translating to €30.40 per share, which represented a significant 78% premium over UMG’s share price on April 2. The terms included a cash payment of €9.4 billion and shares in a combined entity formed by merging UMG with Pershing Square SPARC Holdings. Ackman believed this move would attract institutional investors who are unable to purchase non-US-listed securities. However, UMG had previously put its plans for a US secondary listing on hold due to unfavorable market conditions.
Central to Ackman’s bid was the need for Bolloré’s support, as the Bolloré Group controls approximately 28% of UMG through direct ownership and holdings in Vivendi. Ackman had previously acquired a 10% stake in UMG from Vivendi in 2021 and served on UMG’s board until May 2025. Following his departure from the board, Ackman sold part of his stake, reducing his ownership to 2.7%.
In its recent performance, UMG reported revenues of €2.9 billion ($3.39 billion) for Q1 2026, reflecting an 8.1% year-over-year increase. The company also announced plans to sell half of its equity stake in Spotify, which would generate around $1.4 billion to support an expanded share buyback program. Ackman’s proposal would have involved liquidating UMG’s entire Spotify stake to finance the cash portion of his bid.
UMG reiterated its commitment to continuously assess its business and financial strategies in a rapidly changing industry. The company has recently expanded its share buyback program and announced plans to monetize its Spotify stake while enhancing financial disclosure to improve market understanding of its business. Since becoming a publicly-listed company in 2021, UMG has reportedly led the industry by implementing an artist-centric approach to streaming and achieving notable growth in revenue and adjusted EBITDA. In 2025, UMG captured a 33% share in recorded music, its highest in 12 years, and a 24% share in music publishing.
Citi is serving as the financial advisor to UMG’s Board of Directors, while the legal advisory roles are held by Paul, Weiss, Rifkind, Wharton & Garrison LLP and De Brauw Blackstone Westbroek N.V. Overall, UMG is focused on continuing its leadership in the music industry while fostering creativity and protecting the interests of its artists and stakeholders.
