Universal Music Group Rejects Bill Ackman's $64.3 Billion Takeover Offer
Universal Music Group, the global entertainment conglomerate, has declined a takeover bid from billionaire Bill Ackman's investment firm, Pershing Square. The offer, valued at $64.3 billion, was deemed by Universal to be "not in the best interests" of the company's shareholders, artists, and other stakeholders.
The music giant, which manages artists such as Taylor Swift and Kendrick Lamar, and owns labels including EMI and Island Records, stated that the proposal "fundamentally and materially undervalues" its business. Pershing Square, an existing stakeholder in Universal, has not commented on the rejection.
Ackman initiated his takeover attempt for the world's largest music company in April, intending to list it as a new entity in the United States, departing from its current Euronext Amsterdam listing. He had previously criticised Universal's share price performance, attributing it to financial issues unrelated to its music operations, and highlighted an 18% stake held by Bolloré Group and a delayed New York Stock Exchange listing as contributing factors. Cyrille Bolloré, chief executive of Bolloré Group, had also opposed Ackman's offer, concurring that it undervalued Universal.
Universal's board expressed full confidence in the company's strategic direction under chief executive and chairman Sir Lucian Grainge. The company has pledged "enhanced financial disclosures" to provide clearer insight into its value and future performance.
While global music revenues have seen consistent growth, largely due to streaming subscriptions, the industry continues to grapple with contentious royalty payouts from platforms and the proliferation of AI-generated "deepfakes" impersonating artists.
