Universal Music Says Ackman’s Bid ‘Materially Undervalues’ the World’s Biggest Music Company

Universal Music Group has officially rejected billionaire investor Bill Ackman's ambitious takeover proposal, bringing an end—at least for now—to one of the most closely watched potential deals in the modern music industry.

The world's largest music company announced that its board had unanimously concluded that Pershing Square's unsolicited proposal fundamentally and materially undervalued Universal Music Group and was not in the best interests of shareholders, artists, employees, and other stakeholders. The decision follows weeks of speculation after Ackman's hedge fund, Pershing Square Capital Management, unveiled a cash-and-stock proposal that valued UMG at approximately $64 billion to $65 billion. Reuters reported that the offer valued the company at roughly €30.40 per share, a figure that UMG's leadership ultimately determined did not reflect the company's long-term value or future growth prospects.

The rejection represents a major setback for Ackman, who has spent years pursuing Universal Music in one form or another. Ackman first attempted to acquire a significant stake in UMG back in 2021 through a special-purpose acquisition structure before regulatory complications forced that effort to collapse. Although Pershing Square later became one of Universal's shareholders and Ackman briefly held a seat on the company's board, his latest effort was far more ambitious: an outright takeover of the company behind some of the biggest artists in the world.

Ackman's proposal centered around combining Universal Music Group with Pershing Square SPARC Holdings and eventually moving the company's primary stock listing from Amsterdam to New York. He argued that Universal's stock price had underperformed due to structural and market-related issues rather than weaknesses in the underlying business itself. Ackman maintained that UMG's catalog strength, leadership position in global music, and dominant roster of artists made it one of the most attractive media assets in the world. He also pledged to retain CEO Sir Lucian Grainge and preserve Universal's position as the global leader in recorded music and music publishing.

However, almost immediately after the proposal became public, significant opposition emerged from within Universal's ownership structure.

The most important obstacle came from the Bolloré family, whose holdings give them enormous influence over the future of Universal Music Group. Through direct ownership and related holdings connected to Vivendi, the Bolloré group controls enough voting power to effectively block any transaction they oppose. Even Ackman publicly acknowledged that without Bolloré support there would likely be no path forward for a deal.

That support never arrived.

Instead, Bolloré Group CEO Cyrille Bolloré launched a public campaign against the proposal, arguing that the offer dramatically undervalued Universal Music Group and relied too heavily on Universal's own balance sheet rather than new capital from Pershing Square. During shareholder meetings and public comments, Bolloré repeatedly stated that the price was nowhere near high enough and suggested the proposal failed to recognize the long-term value of Universal's assets. At one point he went so far as to say the offer was effectively already rejected in his view.

The opposition carried enormous weight.

The Bolloré family currently owns roughly 18% of Universal Music Group directly, while additional influence comes through Vivendi's holdings. Combined, those positions create a powerful voting bloc capable of determining the outcome of virtually any major corporate transaction involving UMG. Analysts widely viewed Bolloré's public rejection as a potentially fatal blow to Ackman's efforts even before Universal's board formally announced its decision.

Universal's board ultimately agreed.

According to statements reported Thursday, directors determined that the Pershing proposal failed to reflect the true value of Universal's music catalog, publishing assets, growth opportunities, strategic initiatives, and future earnings potential. The company has emphasized its confidence in existing leadership and in the long-term strategy developed under Sir Lucian Grainge, who has overseen a period of significant growth since Universal became an independent publicly traded company following its separation from Vivendi.

The rejection comes during an important period for Universal Music Group.

Despite concerns among investors regarding slower streaming growth and the potential impact of artificial intelligence on the music business, Universal remains one of the most powerful entertainment companies in the world. Since its public listing, the company has increased revenues substantially, expanded its publishing operations, strengthened relationships with streaming platforms, and continued to acquire valuable catalogs and music-related businesses. Executives have also positioned Universal as a major player in developing AI-related licensing frameworks and future music technologies.

For Ackman, the defeat highlights the challenges of acquiring a company whose value extends far beyond traditional financial metrics.

Universal Music Group is not simply a record label. It controls some of the most valuable music catalogs ever assembled, represents many of the world's biggest artists, operates the largest music publishing company on the planet, and sits at the center of a global music industry increasingly driven by streaming, licensing, and intellectual property rights.

Those assets make Universal extraordinarily difficult to value—and even harder to acquire.

At least for now, Universal Music Group's message is clear: $64 billion is not enough.