Music giant Universal gets $64bn takeover offer
Universal Music Group Receives $64.3bn Takeover Proposal
Bill Ackman, the billionaire CEO of Pershing Square, has announced a $64.3bn (£48bn) offer to acquire Universal Music Group, the global entertainment powerhouse behind iconic artists like Taylor Swift, Sabrina Carpenter, and Kendrick Lamar. The proposed merger would establish a new entity listed on the American stock market, Ackman stated. Universal, the world’s largest music company, manages a vast roster of talent and operates key facilities such as Abbey Road Studios, alongside owning major labels including EMI and Island Records.
Investor Interest and Strategic Moves
Pershing Square, which already holds a stake in Universal, also invests in tech giants like Google, Meta, and Amazon, as well as Restaurant Brands International. The takeover bid comes as Universal has yet to respond, though Ackman expressed confidence in the company’s potential. He highlighted the firm’s success in redefining the music industry to prioritize artists and its ability to leverage AI for growth, while safeguarding intellectual property rights.
“On paper, you might think it’s a money-making machine. In reality, it’s not that simple,” remarked Dan Coatsworth, markets head at AJ Bell.
Coatsworth noted that Universal is home to nine of the top ten global recording artists in 2025, but the slower-than-anticipated expansion of music streaming has affected its financial performance. This is critical since Universal relies heavily on platforms like Spotify and Apple Music for royalty income. Ackman’s letter to the board emphasized that Universal’s stock had underperformed in key US and global indexes, citing factors such as uncertainty over Bolloré Group’s 18% ownership stake and a recent delay in listing shares on the New York Stock Exchange.
Currently listed in Amsterdam, Universal’s shares initially surged by nearly 30% after the takeover news broke on Tuesday. By late afternoon, the increase had settled to a 10% gain. Ackman, a vocal advocate for US listings, has long pushed for Universal to go public in America. His support for Donald Trump in July 2024 was seen as a significant endorsement from the business sector.
“Cut-throat competition in the music business also doesn’t help. Record labels must invest heavily in marketing to elevate their artists, which means Universal must keep spending to generate returns,” Coatsworth added.
Ackman’s bid underscores ongoing debates about Universal’s valuation, with the company’s share price fluctuating despite its market position. The recent resolution of a 2024 dispute with TikTok over royalty payments highlights challenges in ensuring fair compensation from digital platforms, which remain central to the music industry’s revenue model.
