Variety.com
Pershing Square Capital Management is making a bold move into the music business, proposing to acquire a significant stake in Universal Music Group in a deal that could change the ownership structure of the world’s largest music rights holder.
Led by billionaire investor Bill Ackman, the activist firm has submitted an unsolicited, non-binding offer that values UMG at roughly $64 billion. The proposal, confirmed by UMG’s board, combines cash and shares and would position Pershing Square as a major shareholder with potential influence over the company’s long-term strategy.
Under the outlined structure, shareholders would receive a mix of upfront cash and equity in a newly formed entity, with funding drawn from Pershing Square’s own capital, new debt and the potential sale of UMG’s stake in Spotify.
The offer leans on support from key stakeholders, most notably Vivendi and the Bolloré Group, which together control a substantial portion of UMG’s shares. Ackman has acknowledged that without their backing, the deal cannot proceed, even as he expressed confidence in broader shareholder support.
UMG has taken a measured stance. The company said its board will review the proposal in line with its fiduciary responsibilities, emphasizing continued confidence in its current leadership under CEO Lucian Grainge.
Whether the proposal gains traction remains uncertain. Bringing one of Wall Street’s most prominent activist investors into the conversation sparks curiosity about what is next in the industry.
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