UMG Board Rejects Ackman's $64 Billion Takeover Bid
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- Universal Music Group's board unanimously rejected Pershing Square Capital's $64 billion unsolicited, non-binding offer received April 7, 2026, announcing the decision on Friday
- Pershing Square's proposal included approximately $10.9 billion in cash plus stock totaling roughly $35 per share, which the board said "fundamentally and materially undervalues UMG"
- Key shareholder Cyrille Bollore publicly urged UMG to reject the offer a day before the board's announcement, reinforcing the shareholder consensus the board cited
- Bill Ackman argued UMG's stock had "languished" due to ownership-structure uncertainty, its Spotify stake, and a delayed U.S. listing — issues he claimed the transaction would resolve
- UMG's counter-strategy includes an expanded stock buyback program, plans to monetize half its Spotify equity stake, and commitments to enhanced financial disclosure to close the valuation gap on its own
- Chairman Sherry Lansing and CEO Sir Lucian Grainge both backed the rejection, expressing full confidence in the current leadership team and long-term value-creation strategy
- Citi is serving as financial advisor to the UMG board, with Paul, Weiss, Rifkind, Wharton & Garrison and De Brauw Blackstone Westbroek acting as legal advisors
Why it matters: A $64 billion bid going public and being formally rejected puts Ackman and UMG's board on opposite sides of the table after having previously partnered on a U.S. secondary listing. With UMG stock languishing and the board opting for buybacks, Spotify monetization, and better disclosure instead of a sale, roughly 3.5 billion euros' worth of cash-and-stock value now depends on whether the market credits management's standalone plan.
