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Just days after Universal Music Group shut down a multibillion-dollar takeover approach, Bill Ackman’s Pershing Square appears ready to reduce, and potentially eliminate significantly, its long-running position in the music giant.
According to reports, Pershing Square is preparing to offload approximately 80.6 million shares in Universal Music Group through an overnight placement facilitated by Bank of America. At the top end of the proposed pricing range, the transaction could generate roughly €1.5 billion, marking what would be the closing of the chapter on one of the most closely watched institutional investments in the music business.
Last week, Universal’s board unanimously rejected Pershing Square’s proposal to acquire the company in a transaction valuing the business at roughly €55.8 billion ($64.4 billion), arguing that the offer failed to reflect the company’s long-term value and strategic position.
Board Chair Sherry Lansing emphasized the company’s confidence in its existing trajectory, pointing to Universal’s market leadership and sustained execution as reasons for rejecting the proposal.
Ackman had argued the opposite when unveiling the bid in April, suggesting Universal’s public valuation had suffered from issues unrelated to the strength of its underlying music operations. His proposal envisioned merging Universal with Pershing Square SPARC Holdings, relocating incorporation to Nevada, and shifting the company’s primary stock market listing from Amsterdam to New York.
Resistance to the proposal extended beyond Universal’s boardroom. Bolloré Group, Universal’s largest shareholder through its direct ownership stake and holdings connected to Vivendi, publicly criticized the valuation. Cyrille Bolloré dismissed the proposal’s pricing as insufficient and questioned the financing structure behind the offer.
Pershing Square’s relationship with Universal stretches back to 2021, when it acquired roughly a 10% position from Vivendi for about $4 billion. Since then, the hedge fund has steadily reduced its ownership through share distributions and secondary sales.
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