Musicbusinessworldwide.com
Universal Music Group has officially closed the door on Bill Ackman’s takeover proposal, but the company’s response suggests the debate around how much the world’s largest music company is worth is far from over.
On Thursday, UMG’s board unanimously rejected Pershing Square Capital Management’s unsolicited proposal, arguing that the offer materially undervalued the business and failed to create enough long-term value for shareholders, artists, songwriters and other stakeholders.
The decision ends weeks of speculation surrounding a proposal that would have fundamentally reshaped both UMG’s ownership structure and public market identity. Pershing Square’s plan valued the company at roughly €55.8 billion ($64.4 billion) and proposed moving its primary listing from Amsterdam to New York through a merger with Pershing Square SPARC Holdings.
For UMG leadership, the answer was clear: stay the course.
Board Chair Sherry Lansing emphasized confidence in CEO Sir Lucian Grainge and the company’s long-term strategy, while Grainge used the moment to reinforce familiar priorities, artist development, fan engagement, technological innovation and creator protection, as the company navigates what it sees as the next phase of music’s global expansion.
The rejection also reflects where power currently sits inside UMG’s shareholder structure. Before the board made its decision public, Bolloré Group CEO Cyrille Bolloré, whose company remains UMG’s largest shareholder through direct and indirect holdings, effectively signaled the proposal’s fate days earlier, publicly dismissing the valuation and questioning the mechanics behind the offer.
Ackman himself acknowledged early on that support from Bolloré was essential, describing the shareholder’s backing as necessary for any realistic path forward.
The disagreement ultimately comes down to competing visions of value. Pershing Square argued a U.S.-centric structure and New York listing would unlock investor demand and close valuation gaps. UMG, meanwhile, believes the market has yet to fully price in opportunities around superfans, international expansion, merchandising, streaming evolution and AI-driven growth.
Importantly, the company is not standing still. In recent months, UMG expanded its share buyback program, moved to monetize half of its Spotify holdings and promised deeper financial transparency for investors, all signs that management understands shareholder pressure even while rejecting shareholder proposals.
Financially, the company enters the standoff from a position of strength. Since going public in 2021, UMG says revenue has increased roughly 60% while adjusted EBITDA has climbed nearly 70%. The company also continues to dominate market share across recorded music and publishing.
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