Universal Music Group has formally rebuffed an unsolicited takeover approach from Pershing Square Capital Management, saying the proposal materially undervalued the company and was not in the best interests of shareholders and other stakeholders.
The UMG Board of Directors said it unanimously decided against the non-binding proposal that Pershing Square submitted on April 7, after consulting both financial and legal advisers. The board also noted broad support for its decision from shareholders and stakeholders.
Pershing Square had proposed a cash-and-stock transaction through its acquisition vehicle that equated to a value of around 2.40 per Universal Music share, which translated to a total deal value of 55.75 billion (about $65.03 billion). UMG said the board judged that price to be significantly below the companys intrinsic value.
Board response and strategic rationale
Sherry Lansing, chair of UMG's board, reiterated the company's confidence in its existing strategy and its current leadership under Chief Executive Officer Lucian Grainge. Lansing said UMG had built a dominant position in the music industry through deliberate direction and consistent execution, and that the board expects the company to continue generating sustainable growth and creating shareholder value.
"UMG has built an unrivalled position in the music industry through clear vision and strong execution," Lansing said.
UMG highlighted several recent measures it is pursuing to enhance shareholder returns and financial transparency: an expanded share buyback program, plans to monetize half of its equity holding in Spotify, and commitments to increase the level of financial disclosure provided to investors.
Operating performance cited
The company pointed to operational momentum since becoming a publicly listed company in 2021. UMG said revenue has risen by 60% and adjusted EBITDA has climbed by nearly 70% in that period. The firm also reported achieving a 33% share of the recorded music market in 2025, its highest level in 12 years, and a record 24% share in music publishing.
CEO Lucian Grainge emphasized that the company remains focused on attracting leading talent, deepening fan engagement globally, and supporting creative activity in a shifting digital landscape.
Takeaway
UMG's board has rejected Pershing Square's takeover approach on valuation grounds and pointed to recent growth metrics and strategic initiatives as the basis for staying independent. The firm plans to move forward with buybacks, partial monetization of its Spotify stake, and enhanced disclosure while continuing its current strategy and leadership.