In a move that’s sent shockwaves through the global music and financial industries, Bill Ackman’s Pershing Square Capital Management has unveiled a blockbuster proposal to acquire Universal Music Group (UMG) in a deal valued at approximately $64 billion. Announced on April 7, 2026, the offer stands as one of the largest ever for a music company, promising to reshape the landscape for both artists and investors alike.
The bid, which comes via Pershing Square’s acquisition vehicle SPARC Holdings, would see UMG’s stock listing shift from Amsterdam to the New York Stock Exchange. Under the terms presented to UMG’s board, shareholders are being offered €9.4 billion (about $10.9 billion) in cash—equivalent to €5.05 per share—plus 0.77 shares in the newly created “New UMG” entity for every UMG share held. According to Reuters and Music Business Worldwide, this package values UMG at €30.40 ($35) per share, representing a staggering 78% premium over its last closing price of €17.10.
Altogether, the deal implies a total value of €55.8 billion (around $64.4 billion), making it one of the most significant transactions in recent memory. If approved, the merger would not just be about numbers—it would bring together a roster of superstar artists including Taylor Swift, The Weeknd, Lady Gaga, Billie Eilish, Drake, Bad Bunny, The Beatles, Bob Dylan, Kendrick Lamar, Elton John, and Coldplay under the umbrella of a newly minted American corporation.
"UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business and importantly, all of them can be addressed with this transaction," Ackman said in a statement on Tuesday, as reported by multiple outlets. He praised UMG’s management, led by Sir Lucian Grainge, for building a world-class artist roster and delivering strong business performance, but pointed to several persistent challenges that have weighed down the company’s share price.
Among the hurdles cited by Pershing Square are the uncertainty surrounding French conglomerate Bolloré Group’s 18% stake in UMG, the postponement of UMG’s much-anticipated US stock market listing, and what Ackman described as the “underutilization of UMG’s balance sheet.” Other factors include the absence of a clear capital allocation plan, the lack of investor credit for UMG’s €2.7 billion stake in Spotify, and what Pershing Square called “suboptimal shareholder relations and communications.”
The journey to this audacious offer has been years in the making. Pershing Square first acquired a 10% stake in UMG from Vivendi in June 2021 for roughly $4 billion, ahead of UMG’s debut on the Euronext Amsterdam exchange that September. The IPO was a hit, with shares leaping by more than a third and giving the company a market value of €47 billion ($54 billion). But the excitement didn’t last. Over the past twelve months, UMG’s stock has fallen about 33% on the Amsterdam exchange, battered by market uncertainty and unresolved governance questions.
Pershing Square’s involvement deepened in September 2023, when it established SPARC Holdings to pursue business combination opportunities. The firm has since maneuvered through a series of complex negotiations and public statements. In November 2024, Ackman made headlines by publicly seeking to delist UMG from Amsterdam and move its listing to the US, following attacks on Israeli soccer fans in Amsterdam. He asserted a contractual right to push for a US listing, though UMG countered that while Pershing could request such a move, it could not force a change in domicile or delisting without selling at least $500 million in UMG shares.
By January 2025, Ackman had reduced his stake in UMG to 7.48% and initiated the process for a US secondary listing, confirming share sales in March 2025. He resigned from UMG’s board in May 2025, citing new executive and board obligations arising from recent investments. Meanwhile, Cyrille Bolloré, CEO of the Bolloré Group—which owns 18% of UMG—also resigned from the board in July 2025, further fueling speculation about the conglomerate’s intentions for its stake.
UMG confidentially filed for a US secondary listing with the Securities and Exchange Commission in July 2025, but those plans were shelved in March 2026 due to what the company called “uncertain market conditions” that had pushed its valuation below what management believed it was worth. This delay, combined with the ongoing ambiguity around Bolloré’s stake and other strategic concerns, left UMG’s stock price adrift—a situation Ackman and Pershing Square believe their proposal can remedy.
The mechanics of the proposed transaction are intricate. UMG would merge with Pershing Square SPARC Holdings, with the combined entity incorporated in Nevada and listed in New York. “New UMG” would publish financial statements under US GAAP, making it eligible for inclusion in the S&P 500 and other major indexes—a move Ackman has long argued would unlock demand from institutional investors who are unable to purchase non-US listed securities and would improve analyst coverage.
The deal would also facilitate the cancellation of 17% of UMG’s outstanding shares while preserving an investment-grade balance sheet, with New UMG expected to have 1.541 billion shares outstanding. All equity financing is being backstopped by Pershing Square and its affiliates, with all debt financing “committed at signing,” the firm said. Pershing Square hosted an investor webcast on Tuesday to further discuss the proposal and address shareholder questions.
Industry analysts have noted that the proposed shift to a US listing could have far-reaching implications for UMG’s global profile and investor base. The move is seen as a bid to tap into the deeper liquidity and broader analyst coverage of the American capital markets, potentially boosting UMG’s valuation and visibility. “Since UMG’s listing, Sir Lucian Grainge and the company’s management have done an excellent job nurturing and continuing to build a world-class artist roster and generating strong business performance,” Ackman reiterated, emphasizing that the obstacles to a higher share price are “fixable.”
Still, the deal is not without its skeptics. Some investors and industry observers have questioned whether the premium offered is sustainable in the long term, and what the implications might be for UMG’s creative independence and artist relationships. Others see the move as a natural evolution for a company of UMG’s scale and ambition, especially given the changing dynamics of the global music industry.
As it stands, the transaction is expected to close by the end of 2026, pending regulatory approval and a green light from UMG shareholders. If successful, it would mark the end of an era for UMG’s Amsterdam listing and the beginning of a new chapter as a US-based, globally traded music powerhouse.
For now, the world’s music fans and investors alike are watching closely. The next act in this high-stakes corporate drama promises to be every bit as compelling as the chart-topping hits in UMG’s storied catalog.