It’s official: Common Music Group has rejected Invoice Ackman’s takeover provide.
UMG’s Board of Administrators stated right this moment (Could 29) that it has “unanimously decided that the unsolicited and non-binding proposal” it obtained from Pershing Sq. Capital Administration on April 7, 2026, is “not in one of the best pursuits of UMG, its shareholders, artists, songwriters, staff and different stakeholders”.
The Board stated it has “taken the time to totally assess the proposal submitted by Pershing Sq.”.
It added: “After cautious assessment with the help of outdoors monetary and authorized advisors, the Board has rejected the proposal as a result of it essentially and materially undervalues UMG and won’t ship superior worth creation. The Board has heard from a lot of UMG’s shareholders and different stakeholders and believes there’s a sturdy consensus supporting the Board’s choice”.
Sherry Lansing, Chairman of the Board, UMG stated: “UMG has constructed an unrivalled place within the music trade by way of clear imaginative and prescient and powerful execution. The Board has full confidence in Sir Lucian and his group’s capacity to ship sustainable development and continued worth creation for all stakeholders.”
Credit score: Austin Hargrave
“As we execute our technique and ship most long run worth, we look ahead to offering shareholders with larger perception into the drivers of our efficiency and future course of our enterprise.”
Sir Lucian Grainge, Chairman and Chief Government Officer, UMG added: “We stay dedicated to main the trade by attracting the world’s prime expertise, deepening fan engagement globally, and driving innovation.
“Central to that mission is fostering an setting that champions human creativity, protects artists, songwriters, and entrepreneurs, and expands alternatives for development and success.
“As we execute our technique and ship most long run worth, we look ahead to offering shareholders with larger perception into the drivers of our efficiency and future course of our enterprise.”
“I encourage the administration of Common Music to reject it,” Bolloré advised the Bolloré Group‘s annual shareholders assembly on Wednesday (Could 27).
“So far as I’m involved, it’s as if it has been rejected.”
“We expect the value isn’t there in any respect,” Bolloré stated.
“He isn’t making a proposal together with his personal cash,” he added. “It’s our cash, the corporate’s cash.”
On the assembly, Bolloré described the following 5 to 6 years as vital for UMG to capitalize on superfan subscriptions, reside music, geographic enlargement, and merchandising.
He acknowledged that Ackman “was a really sensible investor” who had raised “attention-grabbing” factors on money allocation and the alternatives introduced by AI.
Pershing Sq.‘s non-binding proposal, unveiled in April, valued UMG at roughly €55.8 billion ($64.4 billion), or €30.40 per share – a 78% premium to the corporate’s closing worth on April 2.
Underneath the phrases, shareholders would have obtained €9.4 billion in money and 0.77 shares of recent inventory for every UMG share held.
The plan would have merged UMG with Pershing Sq. SPARC Holdings, with the mixed firm incorporating in Nevada and shifting its major itemizing from Euronext Amsterdam to the New York Inventory Alternate.
Ackman argued the transfer would unlock demand from institutional buyers unable to purchase non-US-listed securities.
UMG had put its personal plans for a US secondary itemizing on maintain in March 2026, citing turbulent market situations.
The billionaire investor had additionally acknowledged that the deal hinged on Bolloré‘s help.
“With out Bolloré, we don’t have a transaction,” Ackman advised buyers when he introduced the bid, including that his first name earlier than launching the proposal had been to the Bolloré Group.
Ackman described that preliminary response as “music to my ears.”
The Bolloré Group controls 28% of UMG by way of a direct stake within the music firm plus its holding in Vivendi.
Pershing Sq. first acquired roughly 10% of UMG from Vivendi in the summertime of 2021, and Ackman sat on the corporate’s board till Could 2025.
Ackman has since bought down a part of that place, together with a 2.7% stake in March 2025.
Cyrille Bolloré stepped down from UMG‘s board in July 2025 to concentrate on his function on the Bolloré Group.
Alongside these outcomes, the corporate stated it will promote half of its fairness stake in Spotify, producing round $1.4 billion to assist fund an expanded share buyback program.
Ackman‘s proposal had envisaged liquidating UMG‘s total Spotify stake to assist fund the money portion of the bid.
Elsewhere within the assertion right this moment, UMG stated: “As an organization working in a fast-evolving sector, UMG and its Board constantly assess the corporate’s enterprise and monetary technique.
“The corporate not too long ago initiated and subsequently expanded its buyback program, introduced plans to monetize half of its Spotify fairness stake, and introduced it will present the market with enhanced monetary disclosure in order that its enterprise may be higher assessed and understood. These are subjects the Board and administration have been contemplating for a number of months, and which can stay below steady assessment.”
It added: “UMG has constantly led the trade, significantly since turning into a listed firm in 2021. This has included pioneering an artist-centric method to Streaming 2.0, underpinned by new agreements with digital service suppliers and main the market in a accountable method to using synthetic intelligence. Additionally since itemizing, UMG has grown income by 60% and Adjusted EBITDA by almost 70%(1), whereas sustaining wholesome returns on fairness. In 2025 UMG achieved a 33% share in recorded music, its highest share in 12 years, and a 24% share in music publishing, the best share UMG has achieved since Music & Copyright began monitoring market share in 2010. For the third consecutive yr, in 2025 UMG artists held 9 of the highest 10 positions on the annual IFPI World Artist Chart.”
Citi is appearing as monetary advisor to the UMG Board of Administrators, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and De Brauw Blackstone Westbroek N.V. are appearing as authorized advisors to the UMG Board of Administrators.Music Enterprise Worldwide
