Lucian Grainge and Bill Ackman Gilbert Flores/Variety/Getty Images; Ilya S. Savenok/Getty Images Universal Music Group‘s board of directors has rejected Bill Ackman and Pershing Square’s $64 billion acquisition proposal, saying Friday that the deal “is not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders.”
“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 said in a statement. “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.”
Reps for Ackman and Pershing Square didn’t immediately respond to request for comment.
In a statement, UMG chairman of the board Sherry Lansing said that 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,” Lansing said.
Ackman and Pershing Square first bought into UMG back in 2021, with Ackman joining UMG’s board that year and leaving in 2025. He’d first floated Pershing Square’s acquisition proposal back in April, with the company arguing that UMG’s stock “languished due to a combination of issues that are unrelated to the performance of its music business and importantly, all of them can be addressed with this transaction.” Among the changes he’d proposed was to move UMG’s listing from Europe to New York.
The board announced its official rejection of Ackman’s proposal just days after Cyrille Bolloré, the CEO of UMG shareholder Bolloré, made public comments similarly arguing the proposal undervalues the world’s largest music company.
In its rejection announcment, UMG touted its recent stock buyback program, as well as its move to sell off half its stake in Spotify in a deal worth around $1.4 billion at the time of the announcement. UMG says its adjusted EBITDA has grown about 70 percent since it listed back in 2021.
“We remain committed to leading the industry by attracting the world’s top talent, deepening fan engagement globally, and driving innovation,” UMG CEO Lucian Grainge said in a statement Friday. “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.”
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