Universal Music Group Officially Rejects Bill Ackman’s $64 Billion Takeover Bid

On Friday, Universal Music Group’s board officially rejected a $64 billion unsolicited takeover proposal from Bill Ackman’s Pershing Square Capital, a decision that followed a firm recommendation from major shareholder Vincent Bolloré to dismiss the offer just a day prior. The board’s move signals a definitive stance against what they view as an undervaluation of the company, which has become a dominant force in the global music industry. Bolloré, a French billionaire and media magnate known for his influence through Vivendi, had publicly urged the board to stand firm, reflecting a broader sentiment among key investors.

The proposal, originally submitted on April 7, 2026, was deemed “not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders” after a comprehensive review involving external financial and legal advisors. The board concluded that the bid “fundamentally and materially undervalues UMG and will not deliver superior value creation,” noting that feedback from numerous shareholders and stakeholders showed widespread support for turning it down. This rejection underscores the growing confidence in UMG’s strategic direction, particularly as the music industry continues to benefit from streaming revenue and intellectual property monetization.

Sherry Lansing, chair of the UMG board, highlighted the company’s competitive edge, stating, “UMG has built an unrivalled position in the music industry through clear vision and strong execution.” She expressed unwavering trust in CEO Lucian Grainge’s leadership since 2011, a period that has seen UMG expand into streaming and artist services, solidifying its role as a market leader. Grainge, who has overseen the signing of top-tier talent like Taylor Swift and Drake, added, “We remain committed to leading the industry by attracting the world’s top talent, deepening fan engagement globally, and driving innovation. Central to that mission is fostering an environment that champions human creativity, protects artists, songwriters, and entrepreneurs, and expands opportunities for growth and success.” This vision aligns with UMG’s strategy to leverage its extensive catalog and digital partnerships.

The rejection marks a notable setback for Ackman, whose Pershing Square Capital has been actively pursuing major media acquisitions, though this bid faced skepticism from analysts who questioned the valuation. UMG, which listed on the stock exchange in 2021, has seen its market value surge amid a streaming boom and a heightened focus on intellectual property rights. The company is being advised by Citi as its financial advisor, with legal counsel from Paul, Weiss, Rifkind, Wharton & Garrison LLP and De Brauw Blackstone Westbroek N.V. Industry experts, such as media analyst Sarah Thompson, have noted that the bid’s failure could prompt Pershing Square to explore other entertainment targets, but UMG’s robust position suggests it will remain an independent powerhouse for the foreseeable future.