UMG’s Board of Directors said today (May 29) that it has “unanimously determined that the unsolicited and non-binding proposal” it received from Pershing Square Capital Management on April 7, 2026, is “not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders”.
The Board said it has “taken the time to fully assess the proposal submitted by Pershing Square”.
It added: “After careful review with the assistance of outside financial and legal advisors, the Board has rejected the proposal because it fundamentally and materially undervalues UMG and will not deliver superior value creation. The Board has heard from many of UMG’s shareholders and other stakeholders and believes there is a strong consensus supporting the Board’s decision”.
Sherry Lansing, Chairman of the Board, UMG said: “UMG has built an unrivalled position in the music industry through clear vision and strong execution. The Board has full confidence in Sir Lucian and his team’s ability to deliver sustainable growth and continued value creation for all stakeholders.”
Credit: Austin Hargrave
“As we execute our strategy and deliver maximum long term value, we look forward to providing shareholders with greater insight into the drivers of our performance and future direction of our business.”
Sir Lucian Grainge, Chairman and Chief Executive Officer, UMG added: “We remain committed to leading the industry by attracting the world’s top talent, deepening fan engagement globally, and driving innovation.
“Central to that mission is fostering an environment that champions human creativity, protects artists, songwriters, and entrepreneurs, and expands opportunities for growth and success.
“As we execute our strategy and deliver maximum long term value, we look forward to providing shareholders with greater insight into the drivers of our performance and future direction of our business.”
“I encourage the management of Universal Music to reject it,” Bolloré told the Bolloré Group‘s annual shareholders meeting on Wednesday (May 27).
“As far as I am concerned, it is as if it has been rejected.”
“We think the price is not there at all,” Bolloré said.
“He is not making an offer with his own money,” he added. “It is our money, the company’s money.”
At the meeting, Bolloré described the next five to six years as critical for UMG to capitalize on superfan subscriptions, live music, geographic expansion, and merchandising.
He acknowledged that Ackman “was a very smart investor” who had raised “interesting” points on cash allocation and the opportunities presented by AI.
Pershing Square‘s non-binding proposal, unveiled in April, valued UMG at approximately €55.8 billion ($64.4 billion), or €30.40 per share – a 78% premium to the company’s closing price on April 2.
Under the terms, shareholders would have received €9.4 billion in cash and 0.77 shares of new stock for each UMG share held.
The plan would have merged UMG with Pershing Square SPARC Holdings, with the combined company incorporating in Nevada and shifting its primary listing from Euronext Amsterdam to the New York Stock Exchange.
Ackman argued the move would unlock demand from institutional investors unable to buy non-US-listed securities.
UMG had put its own plans for a US secondary listing on hold in March 2026, citing turbulent market conditions.
The billionaire investor had also acknowledged that the deal hinged on Bolloré‘s support.
“Without Bolloré, we don’t have a transaction,” Ackman told investors when he presented the bid, adding that his first call before launching the proposal had been to the Bolloré Group.
Ackman described that initial response as “music to my ears.”
The Bolloré Group controls 28% of UMG via a direct stake in the music company plus its holding in Vivendi.
Pershing Square first acquired approximately 10% of UMG from Vivendi in the summer of 2021, and Ackman sat on the company’s board until May 2025.
Ackman has since sold down part of that position, including a 2.7% stake in March 2025.
Cyrille Bolloré stepped down from UMG‘s board in July 2025 to focus on his role at the Bolloré Group.
Alongside those results, the company said it would sell half of its equity stake in Spotify, generating around $1.4 billion to help fund an expanded share buyback program.
Ackman‘s proposal had envisaged liquidating UMG‘s entire Spotify stake to help fund the cash portion of the bid.
Elsewhere in the statement today, UMG said: “As a company operating in a fast-evolving sector, UMG and its Board continuously assess the company’s business and financial strategy.
“The company recently initiated and subsequently expanded its buyback program, announced plans to monetize half of its Spotify equity stake, and announced it would provide the market with enhanced financial disclosure so that its business can be better assessed and understood. These are topics the Board and management have been considering for several months, and which will remain under continuous review.”
It added: “UMG has consistently led the industry, particularly since becoming a listed company in 2021. This has included pioneering an artist-centric approach to Streaming 2.0, underpinned by new agreements with digital service providers and leading the market in a responsible approach to the use of artificial intelligence. Also since listing, UMG has grown revenue by 60% and Adjusted EBITDA by nearly 70%(1), while sustaining healthy returns on equity. In 2025 UMG achieved a 33% share in recorded music, its highest share in 12 years, and a 24% share in music publishing, the highest share UMG has achieved since Music & Copyright started tracking market share in 2010. For the third consecutive year, in 2025 UMG artists held 9 of the top 10 positions on the annual IFPI Global Artist Chart.”
Citi is acting as financial advisor to the UMG Board of Directors, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and De Brauw Blackstone Westbroek N.V. are acting as legal advisors to the UMG Board of Directors.Music Business Worldwide
