According to a report by Bloomberg, citing information from Bank of America Corporation, Ackman and his hedge fund, Pershing Square Capital Management, plan to sell approximately 80.6 million shares in Universal Music through an overnight share placement. The shares are reportedly being offered at up to 18.62 euros each.
A representative for Pershing Square did not immediately respond to requests for comment regarding the reported sale.
The move comes just days after Universal Music's board formally rejected Ackman's ambitious proposal to acquire the company in a deal valued at roughly $64 billion.
Ackman's relationship with Universal Music dates back to 2021, when Pershing Square acquired a 7.1 percent stake in the company for approximately $2.8 billion. Prior to that investment, the hedge fund manager had explored acquiring a stake in Universal Music through a special purpose acquisition company (SPAC), though those efforts ultimately did not materialize.
Following the stock purchase, Ackman joined Universal Music's board of directors and became one of the company's most prominent shareholders. However, he stepped down from the board in May last year, a move that signaled a shift in his involvement with the music powerhouse.
Earlier this year, Ackman renewed his interest in reshaping Universal Music's future by proposing a takeover deal. In April, Pershing Square argued that Universal Music's shares had failed to reflect the company's true value despite strong business fundamentals.
The investor claimed the stock had "languished due to a combination of issues that are unrelated to the performance of its music business."
As part of the proposal, Ackman sought to move Universal Music's primary stock listing from Euronext to the New York Stock Exchange, a move he believed could unlock greater value for shareholders and increase the company's visibility among U.S. investors.
The proposal, however, faced immediate resistance from Universal Music's leadership and key stakeholders.
The company publicly expressed confidence in its existing management team, including Chief Executive Officer Lucian Grainge. Opposition also emerged from major shareholder Cyrille Bolloré, whose family-controlled business remains one of Universal Music's most influential investors.
Last week, Bolloré openly encouraged the board to reject Ackman's offer, arguing that the proposal failed to reflect the company's long-term growth prospects and strategic position within the global music industry.
Just two days later, Universal Music's board officially turned down the bid.
In its response, the company stated that the proposal "fundamentally and materially undervalues UMG and will not deliver superior value creation."
With the takeover effort now defeated and the planned share sale underway, Ackman's exit would bring to a close one of the most closely watched investor-company relationships in the entertainment sector. It would also remove one of Universal Music's largest activist shareholders, leaving the company to continue pursuing its growth strategy under its current leadership.
The outcome underscores the board's confidence in Universal Music's long-term prospects as streaming revenues, licensing opportunities, and artist partnerships continue to drive the company's business, despite pressure from investors seeking structural changes.