On Thursday, June 18, Universal Music Group (UMG) announced its board of directors unanimously determined that a €55 billion acquisition offer from Pershing Square is “not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders.”
The company stated the board rejected the proposal after consulting with financial and legal advisors, concluding it “fundamentally and materially undervalues UMG and will not deliver superior value creation.” Universal Music Group Rejects Pershing Square Bid
UMG added that the board had received feedback from shareholders and stakeholders, indicating broad support for the decision.
Pershing Square’s offer, made in April, represented a 78% premium over UMG’s share price prior to the bid. As of the time of the announcement, UMG’s market capitalization was €35.15 billion.
The company highlighted a 60% increase in revenues since its initial public offering, as well as a projected 33% share of the recorded-music market and 24% share of the publishing market in 2025. It also noted that nine of the top 10 artists on the IFPI’s global chart for that year are represented by Bolloré Calls on UMG to Reject Bill Ackman’s $64B Takeover Bid.
UMG’s announcement included a statement of confidence in the leadership of Sir Lucian Grainge and his team to continue delivering growth and value.
UMG has also been actively involved in the development of UMG Partners with Stability AI to Build the Future of AI-Powered Music Creation.
