Universal Music Group Receives $64.3 Billion Takeover Bid

Tue Apr 07 2026 15:14:47 GMT+0000 (Coordinated Universal Time)

The renowned music conglomerate Universal Music Group, representing stars like Taylor Swift and Kendrick Lamar, faces a monumental $64.3 billion acquisition proposal from Pershing Square, led by businessman Bill Ackman.

Universal Music Group has been approached for a takeover offer estimated at $64.3 billion by the investment firm Pershing Square. The bid aims to transition Universal to a U.S.-listed entity. Despite its vast artist roster and successful management, Universal's share price performance has been questioned, prompting this significant transaction push. Ackman cites challenges surrounding the company's stock valuation and external pressures from competitors and streaming dynamics as motivators for the merger.

Universal Music Group, the entertainment giant behind acts such as Taylor Swift, Sabrina Carpenter, and Kendrick Lamar, has received a takeover offer estimated to be worth $64.3 billion (£48 billion).

The US investment company Pershing Square is offering to buy Universal in a merger that would see the new company listed in America, its billionaire chief executive Bill Ackman said.

As well as representing a huge list of artists, the world's largest music company also runs Abbey Road studios and owns labels such as EMI and Island Records.

Pershing Square, which already owns a stake in Universal, also has holdings in Google, Meta, and Amazon, as well as Restaurant Brands International, which includes Burger King.

Universal is yet to respond to the offer.

Ackman said its management had done an excellent job nurturing and continuing to build a world-class artist roster and generating strong business performance.

He said Universal had reshaped the industry to put artists at its centre and had shown it could seize growth opportunities from artificial intelligence while protecting intellectual property.

But he said the company's stock price had languished due to issues unrelated to the performance of its music business, which could all be addressed with this transaction.

Dan Coatsworth, head of markets at AJ Bell, said: On paper, you might think is a money-making machine. In reality, it's not that simple. Universal is home to nine of the top 10 global recording artists of 2025.

Coatsworth also noted that growth in the music streaming market had been slower than expected, which matters because Universal relies heavily on the likes of Spotify and Apple Music for royalty payments.

In a letter to its board of directors on Tuesday, Ackman said Universal had dramatically underperformed in several key US and world stock indexes.

He blamed a variety of factors, including uncertainty around an 18% stake in Universal owned by Bolloré Group, the family conglomerate of billionaire Vincent Bolloré, as well as a recent decision to delay listing the company's shares on the New York Stock Exchange.

Universal is currently listed in Amsterdam but Ackman has long campaigned for the company to float in the US.

Universal's share price initially soared by nearly 30% after the offer emerged on Tuesday, but later settled to around a 10% increase.

Ackman became a high-profile supporter of Donald Trump in July 2024 during his bid for a second term in the Oval Office, which was seen as an important electoral endorsement from the business world.

How music businesses earn revenue has changed as listeners switched to platforms like TikTok and Instagram, creating new challenges for traditional models.

Coatsworth mentioned Universal had a dispute with TikTok over royalties in 2024 that was now settled, which points to broader concerns around getting paid by social media networks.

He added that cut-throat competition in the music business also doesn't help as record labels must invest significantly in marketing to elevate their artists amidst fierce competition.