Bill Ackman, the head of Pershing Square Capital Management, recently attempted to take over Universal Music Group, a venture that was ultimately unsuccessful. The board at UMG unanimously turned down his unsolicited acquisition proposal, which was aimed at merging the music giant with Pershing Square SPARC Holdings. This proposal valued UMG at approximately $64-65 billion, offering shareholders an attractive price of €30.40 per share. The deal included a combination of cash and new shares, along with plans to shift UMG's primary listing to the New York Stock Exchange based in the United States.
The initial response from the market was positive, with UMG shares experiencing a surge of nearly 10%. However, just a few weeks later, on May 29, 2026, UMG's board firmly rejected Ackman’s proposal, citing a significant undervaluation of the company. One of the main opponents of the deal was Cyrille Bolloré, who, with substantial influence, was a vocal critic of the acquisition.
Ackman’s journey with UMG extends back to 2021 when he first accumulated a 10% stake and even served on the board for a time. This ended in 2025 due to disagreements over future strategies, particularly a potential public listing in the US. His direct ownership eventually fell to about 4.5% prior to his recent decision to sell 80 million shares.
This share placement represents a crucial liquidity event for UMG, creating pressure on current shareholders as the market absorbs the new shares. Such large placements usually cause existing share values to dip temporarily, causing concern among investors. Additionally, Bolloré’s stance against the deal indicates that he and his family view UMG as a vital asset, setting a psychological floor on its valuation. This development will serve as a benchmark for UMG's competitors such as Warner Music Group and Sony Music, which will inevitably be evaluated against this higher valuation.