Universal Music Gets $64bn Takeover Offer From Billionaire Bill Ackman
Universal Music Group could be heading for a major shake-up after billionaire investor Bill Ackman launched a takeover bid worth around $64bn (£48bn), aiming to move the music giant to the US stock market.
Ackman’s investment firm, Pershing Square, has offered a cash-and-shares deal that would merge Universal with one of its investment vehicles before listing the combined company on the New York Stock Exchange.
The proposal values the company, which is home to global stars like Taylor Swift, Drake and Billie Eilish, at a significant premium of 30.4 euros per share compared to its current share price of 17.1 euros. Investors have reacted quickly to the news, sending shares up by around 11–12% following the news.
Ackman praised the company’s performance, saying that their management had done an “excellent job nurturing and continuing to build a world-class artist roster and generating strong business performance”. But he argued that the company’s market value has been held back by factors outside its core business.
In particular, he pointed to delays in a planned US listing, uncertainty around major shareholder stakes, and how the company uses its finances. He said these issues meant that the stock had “languished” despite strong fundamentals.
Under the proposed deal, shareholders would receive €9.4bn in cash along with shares in the newly formed company. The acquisition would also bring changes at board level, with veteran entertainment executive Michael Ovitz expected to take on a leading role.
Universal, which is currently listed in Amsterdam, has seen its share price fall significantly since its 2021 debut. The company has also been navigating rapid changes in the music industry, including the growing impact of artificial intelligence. Ackman believes a US listing could unlock more value and improve access to investors, especially as rivals and tech-driven platforms continue to reshape the industry.
However, the deal is far from certain. It still needs approval from Universal’s board, shareholders, and regulators. Analysts say major investors, including France’s Bolloré Group, will play a key role in deciding its fate.
Some experts also warn that the proposal could disrupt Universal’s current strategy, especially its plans to expand through acquisitions in emerging markets.
For now, the offer has sparked fresh debate about the future of the world’s biggest music label, and whether a move to the US could finally boost its valuation.
