Billionaire activist investor Bill Ackman has thrown down the gauntlet once again. Through his Pershing Square vehicle, he formally proposed on Tuesday a full takeover of Universal Music Group, the world’s largest music company, in a deal valued at roughly $64 billion that blends cash and new shares.
The unsolicited offer marks the latest, and most aggressive, chapter in Ackman’s nearly five-year pursuit of the label powerhouse behind Taylor Swift, Billie Eilish, and Kendrick Lamar.
Pershing Square is offering 30.40 euros per UMG share through its acquisition entity, representing a hefty 78% premium to the stock’s last close of 17.10 euros. That works out to about 55.75 billion euros, or $64.31 billion, in total consideration.
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The structure would see UMG shareholders receive 9.4 billion euros in cash plus 0.77 shares of the new combined company for each UMG share they hold. Funding would come from Pershing’s SPARC rights holders, debt, and proceeds from its existing Spotify stake.
The move comes as UMG prepares to shift its primary listing from Amsterdam to New York—an ambition Pershing has championed for years in the belief that broader access for U.S. index funds and deeper liquidity would finally unlock the company’s true value. Even as global music revenues continue to climb, UMG’s shares have lagged badly, losing nearly a third of their value since the 2021 Amsterdam IPO. The stock currently trades at about 21.8 times earnings, a sharp discount to peers like Spotify.
Universal Music Group responded swiftly but cautiously, confirming receipt of the non-binding proposal and saying its board would review it with advisers.
“The Board of Directors has complete confidence in UMG’s strategy and the leadership of Sir Lucian Grainge and the company’s management team,” the company said, adding that it would have no further comment until the review is complete.
For Ackman, the proposal represents a notably softer touch than his trademark activist campaigns. Investors and analysts described the approach as unusually collaborative. In a conference call outlining the financial terms, Ackman praised the company’s dominance while arguing it had “never really graduated” from being operated like a private company.
But his letter to the board struck a mixed tone—complimentary of Grainge’s leadership yet sharply critical of the company’s “underutilized balance sheet” and its handling of the 2.7 billion-euro investment in Spotify.
Ackman disclosed that he and former Hollywood superagent Michael Ovitz had dined with Grainge “a couple of weeks ago” to discuss the idea.
“Lucian encouraged us to send it in,” Ackman said.
Under the plan, Grainge would remain chief executive. Ovitz would join the board as chair, with two Pershing Square representatives also taking seats. The new entity would be reincorporated in Nevada and listed on the New York Stock Exchange.
The timing is notable. Fears over artificial intelligence’s impact on music, from copyright battles to AI-generated tracks, have weighed on the sector. A survey last year found that 97% of listeners could not distinguish between AI-created and human-composed songs. UMG’s market share has been slipping, streaming growth is slowing, and the company recently postponed its U.S. listing, citing market conditions.
Yet Ackman insists the deal would not derail UMG’s competitive edge. He has long pushed for the New York listing, having first bought a 10% stake from Vivendi ahead of the 2021 IPO. Pershing now holds 4.7%, making it the fourth-largest shareholder. Ackman himself served on the UMG board until last year, after an earlier, more complex SPAC-style attempt in 2021 was shelved amid regulatory concerns.
Any deal would require support from UMG’s key shareholders. Bolloré Group holds 18.5%, Vivendi 13.4%, and China’s Tencent is also a significant investor. The Bolloré family controls 80% of the voting rights, giving them decisive sway. Neither Bolloré Group nor Vivendi commented on the proposal.
Analysts were quick to weigh in. ING researchers noted that the offer appears to challenge UMG management’s own growth plans, which called for roughly 1 billion euros a year in emerging-market acquisitions.
“This seems a rather direct rebuttal of this strategy,” they said, warning the deal could prompt some executives to depart.
Dan Coatsworth, head of markets at AJ Bell, observed that the bid reflects Ackman’s long-standing admiration for Warren Buffett’s playbook of buying high-quality businesses at attractive prices. Still, he cautioned that success would demand “a full-on charm offensive” to win over the major shareholders.
Shares of UMG jumped 13% in Amsterdam trading on the news. Bolloré Group rose 5%, while Vivendi climbed more than 10%. The transaction, if approved, would need clearances from both boards, a two-thirds shareholder vote at a UMG meeting, and regulatory sign-offs. Pershing Square expects it to close by year-end.