A massive $64 billion takeover bid has been placed on Universal Music Group, the powerhouse behind some of the world’s biggest artists. The offer, led by Bill Ackman and his investment firm Pershing Square, could reshape the global music business if approved.
The proposal would merge Universal into a newly structured company and shift its primary stock listing to the United States. For investors, the deal promises a mix of cash and shares, signaling one of the largest moves in entertainment finance in recent years.
Universal Music, widely known for representing stars like Taylor Swift, Sabrina Carpenter, and Kendrick Lamar, sits at the top of the global music industry. Beyond its artist roster, the company owns legendary assets such as Abbey Road Studios and operates major labels including EMI and Island Records.
Ackman praised Universal’s leadership, stating it had “done an excellent job nurturing and continuing to build a world-class artist roster and generating strong business performance”. He also credited the company with shifting the industry to prioritize artists while adapting to emerging technologies like artificial intelligence.
Still, the billionaire investor argued that the company’s market valuation has not kept pace with its operational success. He said its stock price had “languished” due to factors outside its core business performance, issues he believes the proposed deal could fix.
In a formal letter to the board, Ackman added that Universal had “dramatically underperformed” compared to major global indexes. He pointed to uncertainty surrounding the Bolloré Group’s 18% stake and delays in securing a US listing as key concerns weighing on investor confidence.
Under the proposed terms, shareholders would receive €9.4 billion in cash equivalent to €5.05 per share, along with 0.77 shares in the new US-listed entity for each current share held. The combined structure is designed to attract broader American investment and increase liquidity.
The plan also includes changes at the top. Ackman said the board would be “refreshed” with new leadership, including Michael Ovitz, a veteran dealmaker with deep ties to Hollywood.
Pershing Square, already a stakeholder in Universal, has a track record of major investments across global markets, including stakes in Alphabet Inc., Meta Platforms, Amazon, and Restaurant Brands International.
Investors reacted quickly. Universal’s shares jumped roughly 11% in early trading following news of the offer, reflecting strong market interest in the potential deal.
Pershing Square aims to finalize the transaction before the end of the year. Universal has not yet issued an official response.
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