Universal Music Group’s board of directors rejected Bill Ackman and Pershing Square’s $64 billion takeover bid, saying Friday that the deal “is not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders.”
“After careful review with the assistance of external financial and legal advisors, the board rejected the proposal because it fundamentally and materially undervalues UMG and will not deliver superior value creation,” the board said in a statement. “The Board has heard from many UMG shareholders and other stakeholders and believes there is a strong consensus supporting the Board’s decision.”
Representatives for Akman and Pershing Square did not immediately respond to a request for comment.
In a statement, UMG Chairman Sherri Lansing said UMG “has built an unparalleled position in the music industry through clear vision and strong execution.”
“The Board has full confidence in the ability of Sir Lucien and his team to deliver sustainable growth and create ongoing value for all stakeholders,” Lansing said.
Akman and Pershing Square first bought into UMG in 2021, with Akman joining UMG’s board that year and leaving in 2025. He first floated his takeover proposal for Pershing Square in April, with the company arguing that UMG’s shares were “impaired by a range of issues that are unrelated to the performance of its music business and, importantly, all of which can be addressed through this transaction.” Among the changes he proposed was moving UMG’s roster from Europe to New York.
The board announced its formal rejection of Ackman’s proposal just days after Cyril Bolloré, CEO of UMG shareholder Bolloré, made public comments in which he similarly argued that the proposal undervalues the world’s largest music company.
In the rejection announcement, UMG touted its recent stock buyback program, as well as its move to sell half its stake in Spotify in a deal worth about $1.4 billion at the time of the announcement. UMG says its adjusted EBITDA has grown nearly 70 percent since its 2021 listing.
“We are committed to leading the industry by attracting the world’s best talent, deepening global fan engagement, and driving innovation,” UMG CEO Lucian Grainge said in a statement on Friday. “Central to this mission is to foster an environment that supports human creativity, protects artists, songwriters and entrepreneurs, and expands opportunities for growth and success. As we execute on our strategy and deliver maximum value over the long term, we look forward to providing shareholders with greater insight into the drivers of our performance and the future direction of our business.”
