On April 7, 2026, Bill Ackman's Pershing Square announced a proposal to acquire Universal Music Group (UMG) in a cash and stock deal valued at approximately 55.8 billion euros ($64.4 billion) [1]. The offer is set at over 30.4 euros per share, representing a 78% premium to UMG's closing price on April 2 [1]. Shareholders would receive a total of 9.4 billion euros ($10.85 billion) in cash and 0.77 shares of new stock for each UMG share held, with the newly merged entity to be listed on the New York Stock Exchange [1]. The transaction is expected to close by the end of the year [1].
Following the announcement, UMG shares surged 28.3% shortly after the market opened in Amsterdam, reflecting strong investor enthusiasm for the deal [1]. Pershing Square CEO Bill Ackman praised UMG's management, led by Sir Lucian Grainge, for building a world-class artist roster and delivering robust business performance [1]. However, Ackman noted that UMG's stock price has "languished" due to factors unrelated to its music business, such as uncertainty over Bollore Group's 18% stake, the postponed U.S. listing, and "suboptimal" shareholder communications and engagement [1].
UMG, which was listed on the Euronext Amsterdam stock exchange in 2021 with an initial valuation of 46 billion euros, was spun out of French media group Vivendi. Vincent Bollore, Vivendi's controlling shareholder, retains a stake worth around 5.9 billion euros [1]. Ackman has advocated for UMG to shift its primary listing to the U.S., arguing that the stock trades at a significant discount to its intrinsic value and suffers from limited liquidity [1]. Vivendi declined to comment on the proposed merger [1].
The deal is seen as a major move for the world's largest music company, which represents platinum-selling artists such as Lady Gaga and Taylor Swift [1].
CONCLUSION
Pershing Square's $64.4 billion takeover proposal for Universal Music Group has triggered a sharp rally in UMG shares, with investors responding positively to the substantial premium and plans for a U.S. listing. The merger aims to address longstanding issues affecting UMG's stock performance, positioning the company for enhanced shareholder value and market visibility. The transaction is expected to close by year-end, pending further developments.