Universal Music Group Receives €55bn Takeover Offer from Pershing Square

By Lauren Almeida

*Published: 2026-04-07T09:03:21.000Z*

Pershing Square Capital Management, the New York-based hedge fund led by Bill Ackman, has submitted an offer to acquire Universal Music Group (UMG) in a transaction valuing the company at approximately €55bn (£48bn). The proposal involves a combination of cash and stock, and would relocate UMG's stock market listing from Amsterdam to New York.

In a statement, Ackman noted that UMG, under the leadership of CEO Sir Lucian Grainge, has effectively managed its artist roster and delivered strong business results. However, he attributed the company's lagging share price to factors unrelated to its core music operations.

UMG shares, listed on the Euronext Amsterdam exchange since 2021, have declined by more than 25% over the past year. Following the announcement of Pershing Square's offer, the shares rose 11% on Tuesday.

UMG is one of the three largest record labels globally, alongside Sony Music Entertainment and Warner Music Group. Its artist roster includes performers such as Taylor Swift, Elton John, Adele, Drake, Ariana Grande, and classical musicians.

Ackman identified several contributors to the share price underperformance, including delays in pursuing a U.S. listing, underutilization of the company's balance sheet, and uncertainty surrounding the 18% stake held by Bolloré Group. Bolloré Group, controlled by French billionaire Vincent Bolloré, is UMG's largest single shareholder. Vivendi, another entity controlled by the Bolloré family, holds an additional 10% stake.

Ackman also pointed to insufficient investor recognition of UMG's €2.7bn stake in Spotify, the music streaming service.

Pershing Square, founded by Ackman in 2004, manages over $26bn in assets. The fund acquired a 10% stake in UMG in 2021, though Ackman stepped down from UMG's board of directors last year due to other commitments.

Dan Coatsworth, head of markets at AJ Bell, commented that Ackman would require significant efforts to secure approval from UMG's major shareholders. "Bill Ackman has long admired Warren Buffett’s style of finding good companies going cheap and buying them outright. Ackman has now gone full-on Buffett with a takeover offer for Universal Music Group (UMG) via one of his Pershing Square investment vehicles," Coatsworth stated.

Although Ackman praised the performance of Grainge and the management team, the proposed deal includes changes to the board. It would appoint Michael Ovitz, a former talent agent, as chair, and add two Pershing Square representatives to the board.

The agreement would also involve a new employment contract and compensation package for Sir Lucian Grainge. Last year, Grainge received total compensation exceeding €41m, comprising a €4.4m base salary and over €30m in bonuses.

Under the terms outlined by Pershing Square, UMG would merge with a special purpose acquisition company (SPAC) established by the hedge fund, followed by a listing on the New York Stock Exchange. Existing shareholders would receive €9.4bn in cash and 0.77 shares in the new entity for each UMG share held. This package equates to a 78% premium over UMG's closing share price on Thursday, according to Pershing Square.

UMG was approached for comment but had not responded at the time of publication.

*(Word count: 562)*