Universal Music rejects billionaire Bill Ackman's takeover bid
Universal Music Group, the world's biggest music company, has rejected a takeover bid worth about €49 billion from US hedge-fund manager Bill Ackman's Pershing Square vehicle. The Amsterdam-listed group said the price 'significantly undervalues' the business. The board's stance signals European resistance to US-led consolidation of catalogue assets.
Universal Music Group has rejected a takeover bid of roughly €49 billion lodged by US billionaire hedge-fund manager Bill Ackman through his Pershing Square vehicle. The Amsterdam-listed group's board said the offer 'significantly undervalues the company'. Universal owns the world's largest music catalogue, spanning artists from The Beatles to Taylor Swift.
Pershing Square's bid would have produced the music sector's biggest acquisition in years. Ackman previously disclosed a roughly 10% stake in Universal and built his case around the thesis that 'content-rights values are rising in the artificial-intelligence era'. CFRA Research analyst Tuna Amobi said the rejection reflects both pricing concerns and the board's caution about European change-of-control rules.
UMG shares closed about 3.8% higher in Amsterdam on the day of the announcement. Sector analysts see a revised Pershing Square offer as likely. The European Commission's competition unit said it is monitoring a possible deal in its 'communications phase'. This article is sector analysis and not investment advice; readers should consult a licensed financial adviser before acting.
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