Universal Music Group, the entertainment giant behind acts such as Taylor Swift, Sabrina Carpenter, and Kendrick Lamar, has received a takeover offer estimated to be worth $64.3 billion (£48 billion). US investment company Pershing Square is proposing to buy Universal in a merger that would see the new company listed in America, its billionaire chief executive Bill Ackman said.
As well as representing a huge list of artists, the world's largest music company also runs Abbey Road studios and owns labels such as EMI and Island Records. Pershing Square, which already owns a stake in Universal, also has holdings in Google, Meta, and Amazon, as well as Restaurant Brands International, which includes Burger King. Universal is yet to respond to the offer.
Ackman praised Universal's management for nurturing a world-class artist roster and generating strong business performance. He noted that the company had reshaped the industry to prioritize artists, showcasing its ability to leverage growth opportunities while protecting intellectual property. However, he indicated that Universal's stock price had languished due to factors unrelated to the success of its music business, which he believes could be addressed through the proposed transaction.
Dan Coatsworth, head of markets at AJ Bell, commented on Universal's seemingly profitable stature, pointing out that despite housing nine of the top 10 global recording artists of 2025, growth in the music streaming sector had been slower than anticipated. He highlighted that Universal depends heavily on platforms like Spotify and Apple Music for revenue.
In a letter to Universal's board on Tuesday, Ackman stated that the company had significantly underperformed in several key stock indexes. Factors contributing to this underperformance include uncertainty surrounding the 18% stake held by Bolloré Group, as well as delays in the planned listing of Universal's shares on the New York Stock Exchange. Currently, the company is listed in Amsterdam, but Ackman has long advocated for a U.S. flotation.
The development has led to a notable increase in Universal's share price, which surged nearly 30% following the announcement of the takeover offer. By the afternoon, shares were up by 10%.
As well as representing a huge list of artists, the world's largest music company also runs Abbey Road studios and owns labels such as EMI and Island Records. Pershing Square, which already owns a stake in Universal, also has holdings in Google, Meta, and Amazon, as well as Restaurant Brands International, which includes Burger King. Universal is yet to respond to the offer.
Ackman praised Universal's management for nurturing a world-class artist roster and generating strong business performance. He noted that the company had reshaped the industry to prioritize artists, showcasing its ability to leverage growth opportunities while protecting intellectual property. However, he indicated that Universal's stock price had languished due to factors unrelated to the success of its music business, which he believes could be addressed through the proposed transaction.
Dan Coatsworth, head of markets at AJ Bell, commented on Universal's seemingly profitable stature, pointing out that despite housing nine of the top 10 global recording artists of 2025, growth in the music streaming sector had been slower than anticipated. He highlighted that Universal depends heavily on platforms like Spotify and Apple Music for revenue.
In a letter to Universal's board on Tuesday, Ackman stated that the company had significantly underperformed in several key stock indexes. Factors contributing to this underperformance include uncertainty surrounding the 18% stake held by Bolloré Group, as well as delays in the planned listing of Universal's shares on the New York Stock Exchange. Currently, the company is listed in Amsterdam, but Ackman has long advocated for a U.S. flotation.
The development has led to a notable increase in Universal's share price, which surged nearly 30% following the announcement of the takeover offer. By the afternoon, shares were up by 10%.
