Pershing Square Proposes $64 Billion Acquisition of Universal Music Group

Bill Ackman aims to take UMG public on the NYSE and boost its stock price through major index inclusion.

Apr. 7, 2026 at 3:54pm

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A photorealistic studio still life featuring a sleek turntable and vinyl records in a clean, monochromatic setting, symbolizing the abstract concepts of music industry finance and valuation.A minimalist studio still life captures the high-stakes financial maneuvering behind the music industry's most valuable assets.NYC Today

Bill Ackman's Pershing Square Capital Management has proposed a $64 billion cash-and-stock acquisition of Universal Music Group (UMG), the parent company of major music artists like Taylor Swift, Drake, and Bad Bunny. The deal would merge UMG with Pershing Square's acquisition vehicle and list the combined company, dubbed "New UMG", on the New York Stock Exchange. Ackman argues that UMG's stock has "languished" despite strong business performance and aims to make the company eligible for major US indexes like the S&P 500 to drive up its valuation.

Why it matters

This proposed deal represents a major shakeup in the music industry, as Ackman seeks to take UMG public in the US and boost its stock price through index inclusion. If successful, it could significantly change the landscape for how the world's largest music company is owned and operated, with potential implications for artists, investors, and the broader streaming music market.

The details

Under the terms of the proposal, UMG shareholders would receive 5.05 euros per share in cash, along with 0.77 shares of the new "New UMG" company for every share they currently hold. Pershing Square will contribute 2.5 billion euros to help fund the deal, while another 1.5 billion euros will come from the sale of UMG's stake in Spotify. The plan also includes a leadership change, with Disney executive Michael Ovitz slated to become the new chairman of New UMG.

  • Pershing Square announced the proposed acquisition on April 7, 2026.
  • The deal is expected to close by the end of 2026, if approved by a two-thirds vote of UMG shareholders.

The players

Pershing Square Capital Management

An American hedge fund founded and led by billionaire investor Bill Ackman, which currently owns a 4.74% stake in Universal Music Group.

Universal Music Group (UMG)

The world's largest music company, home to major artists like Taylor Swift, Drake, and Bad Bunny, and currently listed on the Euronext Amsterdam exchange.

Bill Ackman

The founder and CEO of Pershing Square Capital Management, who is proposing the $64 billion acquisition of UMG.

Michael Ovitz

The former president of The Walt Disney Company, who is slated to become the new chairman of "New UMG" under Ackman's proposal.

Sir Lucian Grainge

The current CEO of Universal Music Group, who Ackman says will provide the "strategic execution" needed to navigate the challenges facing the music industry.

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What they’re saying

“While the business performance has been strong, UMG's share price has languished.”

— Bill Ackman, CEO, Pershing Square Capital Management

“This deal represents a major shakeup in the music industry, as Ackman seeks to take UMG public in the US and boost its stock price through index inclusion.”

— Francisco Velasquez, Reporter, Yahoo Finance

What’s next

The proposed acquisition is currently non-binding and requires a two-thirds vote from UMG shareholders to pass. If approved, Ackman expects the deal to close by the end of 2026.

The takeaway

Ackman's bold move to acquire and list UMG on the NYSE reflects his belief that the music company is dramatically undervalued and could see a significant stock price boost through inclusion in major US indexes. The deal could reshape the music industry's ownership structure and dynamics, with potential implications for artists, investors, and the streaming landscape.