Universal Music Group rejected Pershing Square’s $64.3 billion takeover offer, calling it not in the best interests of the company, shareholders, artists, and fans and saying it fundamentally undervalues the business. Universal, which runs Abbey Road Studios and owns labels including EMI and Island Records, said the bid overlooked the value of its global music operations and leadership under CEO and chairman Sir Lucian Grainge.
Bid Details And Valuation Dispute
Pershing Square, which already holds a stake in Universal, launched the April bid to list the company as a new entity in the United States; Universal is currently listed on Euronext Amsterdam. Ackman said Universal’s share price had languished due to financial issues unrelated to music performance and pointed to an 18% Bolloré Group stake and a delayed NYSE listing as factors holding the company back.
Opposition And Board Confidence
Bolloré Group’s CEO Cyrille Bolloré opposed the offer, saying it undervalued Universal. Universal’s board expressed full confidence in Grainge’s strategy and promised enhanced financial disclosures going forward so investors can better assess and understand the company’s value.
Executive Commitment And Industry Context
Grainge said Universal remains committed to leading the global music industry through innovation, signing top stars, and deepening fan engagement while delivering long-term value. Global music revenues have grown year-on-year after streaming subscriptions helped the industry recover from piracy-era declines, but disputes continue over royalty payouts from platforms.
AI And Deepfake Challenges
The industry is also confronting a rise in AI-generated deepfake songs that impersonate artists and flood platforms, adding pressure on rights management and content protection. Universal’s rejection of the offer comes as the company navigates these structural shifts alongside its growth strategy.
Featured image credits: Wikimedia Commons
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