Pershing Square Launches $64 Billion Bid to Move Universal Music to the US Market

2026-04-08 companies

New York, Tuesday, 7 April 2026.
Seeking to unlock value, Bill Ackman’s Pershing Square launched a $64 billion bid for Universal Music Group, offering a massive 78% premium to move its stock listing to America.

The Mechanics of the Mega-Merger

On April 6, 2026, Bill Ackman’s Pershing Square Capital Management submitted a non-binding proposal to acquire all outstanding shares of Universal Music Group (UMG) [3]. The transaction values the music giant—home to artists like Taylor Swift and Kendrick Lamar [1]—at approximately €55.75 billion, or $64.31 billion [4]. Under the terms of the proposed merger with Pershing Square SPARC Holdings, Ltd., UMG shareholders would receive a total consideration of €30.40 per share [3]. This represents a 77.778% premium over UMG’s closing price of €17.10 on April 2, 2026 [4].

Addressing the Valuation Disconnect

The core rationale behind the takeover bid is a stark divergence between UMG’s operational success and its public market valuation. Since spinning out from Vivendi and listing on the Euronext Amsterdam exchange in September 2021 with an initial valuation of €46 billion [2][7], UMG has seen its revenues and Adjusted EBITDA climb by 60% and 70%, respectively [7]. Despite housing nine of the top ten global recording artists in 2025 [5], the company’s share price had declined by 23% from its first-day closing price of €25.10 [7]. Ackman, who served on UMG’s board until 2025 [6], noted that the stock has underperformed the S&P 500 index by approximately 8,400 basis points [7].

Market Reaction and Strategic Hurdles

Financial markets reacted swiftly to the April 2026 proposal. UMG shares surged approximately 12% in early trading on April 7, recovering ground after having fallen 13% earlier in the year [2]. Shares of former parent company Vivendi and the Bolloré Group also traded up by 10% and 5%, respectively [2][4]. Following the merger, which aims to cancel 17% of UMG’s outstanding shares, New UMG would have 1.541 billion shares outstanding [3]. Pershing Square models that the newly structured entity will generate roughly €2.3 billion in cash by 2027, creating a €15 billion pool over the next five years for acquisitions, investments, and share repurchases [7].

Sources

Mergers and acquisitions Universal Music Group