Pershing Square Proposes $64 Billion Deal to Merge with Universal Music Group

Bill Ackman's investment firm aims to revive the world's largest music label through a U.S. listing.

Apr. 7, 2026 at 11:40am

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A photorealistic studio still life featuring a stack of vinyl records, a sleek music player, and a pair of high-end headphones arranged on a clean, monochromatic background, symbolizing the abstract business forces shaping the music industry.A conceptual still life captures the high-stakes corporate maneuvering behind the world's largest music label.NYC Today

Bill Ackman's Pershing Square has proposed a deal to merge Universal Music Group (UMG) with its investment fund, valuing the music label at around $64 billion. The cash-and-shares offer represents a 78% premium to UMG's last closing price and would involve listing the combined entity on the New York Stock Exchange. Pershing Square believes the move could help boost UMG's share price and liquidity, which have declined since its 2021 listing.

Why it matters

The proposed deal highlights the challenges facing major music labels like UMG as they navigate the rapidly evolving, AI-driven music landscape. UMG's shares have lost nearly a third of their value since going public, underperforming competitors like Spotify. Pershing Square believes a U.S. listing and its involvement could help revive UMG's fortunes.

The details

Under the proposal, Pershing Square's SPARC Holdings would merge with UMG, and the new entity would become a Nevada corporation listed on the NYSE. Talent agent Michael Ovitz would join the board as chairman, with two Pershing representatives also taking seats. UMG shareholders would receive a mix of cash and shares in the new company. The deal would be subject to approvals from UMG and SPARC's boards, a two-thirds shareholder vote, and regulatory clearances.

  • Pershing Square proposed the deal on Tuesday, April 7, 2026.
  • The transaction is expected to close by the end of 2026.

The players

Pershing Square

An investment firm led by billionaire Bill Ackman that currently owns a 4.7% stake in Universal Music Group.

Universal Music Group

The world's largest music label, home to artists like Taylor Swift, Billie Eilish, and Drake.

Bollore Group

The largest shareholder of Universal Music Group, owning an 18% stake.

Michael Ovitz

A talent agent and former president of The Walt Disney Company, who would join the board of the combined entity as chairman.

Tencent Holdings

The third-largest shareholder of Universal Music Group.

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What they’re saying

“The management has done an 'excellent' job of running a strong business and strategic execution. But uncertainty over the 18% stake held by Bollore Group, the delay to the planned U.S. listing and underutilisation of its balance sheet, among other things, have contributed to its low share price.”

— Bill Ackman, Founder, Pershing Square

What’s next

The proposed deal will require approvals from the boards of Pershing Square and Universal Music Group, as well as a two-thirds shareholder vote and regulatory clearances. The transaction is expected to close by the end of 2026.

The takeaway

This deal highlights the challenges facing major music labels like Universal Music Group as they navigate the rapidly evolving, AI-driven music landscape. Pershing Square believes its involvement and a U.S. listing could help revive UMG's fortunes and boost its share price and liquidity.