Bill Ackman's Pershing Square Tables $64 Billion Bid to Take Over Universal Music Group

Billionaire Investor Eyes $64 Billion Universal Music Takeover

Universal Music Group, the powerhouse label representing some of the world's biggest musical talents including Taylor Swift, Sabrina Carpenter, and Kendrick Lamar, has become the target of a massive acquisition bid. US-based investment firm Pershing Square, led by billionaire chief executive Bill Ackman, has put forward a takeover proposal valuing the entertainment giant at approximately $64.3 billion (£48 billion).

Ackman confirmed that the proposed deal would involve merging Universal into a new entity, with the combined company subsequently listed on a US stock exchange — a move he has long championed.

What Universal Music Group Brings to the Table

As the largest music company in the world, Universal's portfolio extends well beyond its impressive artist roster. The group owns and operates the legendary Abbey Road Studios, along with storied record labels including EMI and Island Records. Pershing Square is no stranger to the company, having already held a stake in Universal prior to this offer, alongside investments in major corporations such as Google, Meta, Amazon, and Restaurant Brands International — the parent company of Burger King.

Ackman praised Universal's leadership in his formal letter to the board, stating that management had done an outstanding job cultivating a world-class lineup of artists and delivering solid business results. He also credited the company with successfully repositioning the industry around its artists and demonstrating the ability to harness artificial intelligence as a growth tool while safeguarding intellectual property rights.

Why Ackman Believes the Stock Is Undervalued

Despite these strengths, Ackman argued that Universal's share price has stagnated for reasons largely disconnected from its core music operations — issues he believes this proposed transaction could resolve. In his letter to the board, he pointed to Universal's significant underperformance against major US and global stock market indices.

Among the contributing factors, Ackman cited uncertainty surrounding an 18% ownership stake held by Bolloré Group, the family-run conglomerate of French billionaire Vincent Bolloré, as well as a recent decision to postpone a New York Stock Exchange listing. Universal is currently traded on the Amsterdam exchange.

Following news of the bid, Universal's share price initially surged by nearly 30% before settling around 10% higher by the close of trading.

Industry Headwinds Complicate the Picture

While the offer has generated significant excitement, market analysts caution that Universal's business landscape is far from straightforward. Dan Coatsworth, head of markets at AJ Bell, noted that although Universal is home to nine of the top ten global recording artists of 2025, growth in the music streaming sector has been slower than anticipated — a concern given how heavily the label depends on royalty income from platforms like Spotify and Apple Music.

Global music revenues have steadily recovered year over year, largely thanks to the rise of streaming subscriptions, which pulled the industry back from the brink of financial collapse driven by rampant piracy. However, the debate over how fairly streaming platforms compensate artists and labels remains fierce and unresolved.

The AI and Social Media Challenge

Beyond streaming disputes, Universal faces growing threats from AI-generated deepfakes — fraudulent tracks mimicking its artists that are increasingly flooding digital platforms. The company has also had to navigate tense negotiations with social media giants over fair music compensation.

In 2024, Universal threatened to remove its entire catalog from TikTok, citing inadequate royalty payments and concerns over the impact of AI on human artists. Though that dispute has since been resolved, it underscores broader tensions around monetising music through social media networks.

Coatsworth also highlighted the intense competitive pressures within the music industry itself. Record labels must continuously invest heavily in marketing to help their artists cut through an increasingly crowded marketplace, meaning Universal faces the perpetual challenge of spending significantly just to stay ahead.

Universal Music Group has yet to formally respond to Pershing Square's takeover proposal.