Bill Ackman’s $65B UMG Bid Rejected Over Valuation Concerns

Universal Music Group (UMG) has rejected a $65 billion takeover bid from Bill Ackman’s Pershing Square Capital, stating the offer “undervalues” the company. The decision follows opposition from UMG’s largest billionaire-backed shareholder, the Bolloré Group.

UMG’s board reviewed Pershing Square’s proposal and concluded it “fundamentally and materially undervalues” the music giant and would not create superior value for shareholders. The Bolloré Group’s CEO Cyrille criticized the bid as “absolutely not high enough” and questioned Ackman’s compatibility with UMG’s management.

Ackman’s April offer valued UMG at $35.13 per share and included plans to merge UMG with Pershing Square SPARC Holdings and relocate its primary stock listing from Amsterdam to the New York Stock Exchange. Ackman had indicated that without support from major shareholders like Bolloré, the deal could not proceed.

Ackman has shown interest in UMG for years, acquiring a 10% stake in 2021 and serving on its board until 2025. During his time on the board, he advocated for moving UMG’s stock listing to the U.S., citing a discounted valuation due to its Amsterdam listing. UMG’s stock has dropped over 30% in the past year amid rising costs and earnings falling short of expectations.