Ackman’s hedge fund, Pershing Square Capital Management, has put forward a cash-and-stock offer to acquire the company, which represents global superstars including Taylor Swift and Elton John.
In a statement, Ackman praised UMG’s leadership under Lucian Grainge, crediting management with building a “world-class artist roster” and delivering strong operational performance. However, he argued that the company’s stock has underperformed due to factors unrelated to its core music business.
Shares in the Amsterdam-listed company, which went public in 2021, have fallen by more than 25% over the past year. Ackman attributed this decline to several issues, including delays in securing a US listing, underuse of the company’s balance sheet, and uncertainty surrounding the roughly 18% stake held by Bolloré Group.
He also pointed to what he described as insufficient investor recognition of UMG’s €2.7bn stake in Spotify.
UMG remains a dominant force in the global music industry, standing alongside rivals Sony Music Entertainment and Warner Music Group. Its catalogue spans genres and generations, featuring artists such as Adele, Drake and Ariana Grande.
Under the proposed deal, UMG would merge with a special purpose acquisition company (SPAC) created by Pershing Square before seeking a listing on the New York Stock Exchange. Shareholders would receive €9.4bn in cash along with 0.77 shares in the newly listed entity for each existing share—representing a 78% premium to the company’s recent closing price.
As part of the restructuring, veteran talent agent Michael Ovitz is expected to be appointed chair, alongside additional board representation from Pershing Square. The proposal also includes renegotiation of Grainge’s employment contract and compensation package, which exceeded €41m last year.
Pershing Square, founded by Ackman in 2004 and managing more than $26bn in assets, already holds a 10% stake in UMG. The company has yet to publicly respond to the offer.