In a statement released on Friday, UMG's board said it had conducted a thorough review of the proposal before unanimously deciding to reject it. The company maintained that the offer did not accurately reflect Universal's long-term growth prospects or its dominant position within the global music industry.
"The Board unanimously concluded that Pershing Square's proposal materially undervalues UMG and is not in the best interests of shareholders, artists, employees, and other stakeholders," the company said.
The bid was spearheaded by billionaire investor Bill Ackman through his hedge fund, Pershing Square Capital Management. In April, the investment firm proposed a cash-and-stock transaction through an acquisition vehicle that valued Universal Music at approximately €30.40 per share, placing the overall deal value at roughly €55.75 billion ($65 billion).
Despite growing optimism surrounding the global music business, Universal's share performance has struggled to keep pace with expectations in recent years. Ackman had argued that his proposed transaction would help unlock shareholder value and address what he viewed as an undervaluation of the company in public markets.
However, Universal's leadership remains confident that its current strategy will generate stronger returns over time. The company's largest individual shareholder, Vincent Bolloré, reportedly urged the board to reject the proposal, reinforcing opposition to the takeover attempt.
Universal Music, home to some of the world's biggest recording stars including Taylor Swift, Billie Eilish, and Kendrick Lamar, has recently embarked on several initiatives aimed at improving shareholder returns and enhancing transparency.
Among the measures announced by the company are a stock buyback programme, plans to sell half of its stake in music streaming platform spotify.com, and enhanced financial disclosures designed to provide investors with a clearer understanding of the company's operations and growth potential.
UMG is also preparing to shift its primary stock market listing from Amsterdam to New York City. Analysts believe the move could attract a broader pool of investors, including major index funds, potentially boosting liquidity, earnings visibility, and the company's overall market valuation.
The latest development marks another chapter in Ackman's long-running interest in Universal Music. In 2021, he attempted to acquire a stake in the company through a special-purpose acquisition vehicle (SPAC) arrangement. That effort was eventually abandoned following regulatory scrutiny in the United States. Pershing Square later became a major shareholder in Universal, while Ackman served on the company's board until stepping down last year.
Defending the company's direction, UMG Board Chairman Sherry Lansing expressed strong confidence in the current management team.
"UMG has built an unrivaled position in the music industry through clear vision and strong execution," Lansing said.
She added: "The Board has full confidence in Sir Lucian and his team's ability to deliver sustainable growth and continued value creation for all stakeholders."
With the takeover bid now firmly rebuffed, Universal Music appears determined to pursue its independent growth strategy while positioning itself for greater investor participation and long-term value creation in the rapidly evolving global music market.