Activist investor Bill Ackman has launched a $64 billion bid to acquire Universal Music Group (UMG), the label behind global superstars including Taylor Swift and Bad Bunny, in a cash-and-stock transaction that could reshape the global music industry.
The proposed deal, announced by Ackman’s hedge fund Pershing Square Capital Management, would see Universal Music merge with Pershing Square SPARC Holdings, a special acquisition vehicle approved by the U.S. Securities and Exchange Commission in 2023.
This is according to a statement by the company as seen by AP News On April 7, 2026.
What the statement is saying
Under the terms of the offer, Universal Music shareholders would receive €9.4 billion in cash equivalent to €5.05 per share and 0.77 shares in the newly formed company for each UMG share held.
- The total consideration values UMG at €30.40 per share, or approximately $35.12, implying an overall valuation of about €56 billion ($64 billion).
- The combined entity is expected to be headquartered in Nevada, with plans to shift its stock listing from Amsterdam to the New York Stock Exchange, a move aimed at unlocking shareholder value and increasing access to U.S. capital markets.
Ackman said the transaction is designed to address what he described as a disconnect between UMG’s strong operating performance and its market valuation.
- “UMG’s stock price has languished due to a combination of issues unrelated to the performance of its music business, all of which can be addressed with this transaction,” he said.
Shares of Universal Music rose more than 10% in midday trading in Amsterdam following the announcement, reflecting investor optimism around the proposed restructuring and relisting.
The deal is expected to close by the end of 2026, subject to regulatory approvals and shareholder consent. Universal Music has not yet issued an official response to the offer.
What you should know
The bid comes amid significant leadership and strategic shifts involving Ackman and Universal Music. The billionaire investor in March 2025 stepped down from UMG’s board after its annual general meeting, ending a three-year tenure that began shortly after the company’s 2021 public listing.
- Ackman’s exit reflected a broader realignment of priorities as he focuses on expanding responsibilities at Pershing Square and a new leadership role at Howard Hughes Holdings.
- UMG has also been strengthening its footprint in emerging markets, particularly Nigeria. In 2024, the company acquired a majority stake in Mavin Global Limited, the label founded by Don Jazzy, as part of efforts to deepen its presence in Africa through its global distribution network.
Mavin’s artists, including Rema and Ayra Starr, are already integrated into UMG’s international ecosystem, with affiliations across major U.S. labels such as Republic and Interscope. The label’s broader roster features talents like Ladipoe, Johnny Drille, Crayon, Magixx, Bayanni, Boy Spyce, DJ Big N, Lifesize Teddy, among others.
