Pershing Square Proposes $55B Deal to Take Universal Music Public

Activist investor Bill Ackman's hedge fund aims to merge UMG with a new acquisition company to unlock value.

Apr. 9, 2026 at 8:07pm

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A minimalist studio still life photograph featuring sleek, premium music industry objects like a streaming device, vinyl records, and headphones, symbolizing the strategic and financial implications of Pershing Square's proposed acquisition of Universal Music Group.Pershing Square's proposed $55 billion deal to acquire Universal Music Group signals a shift in the power dynamics of the global music industry.NYC Today

Pershing Square, the hedge fund led by activist investor Bill Ackman, has announced a proposed transaction to acquire Universal Music Group (UMG) in a deal valuing the music giant at up to 55 billion euros. Under the plan, Pershing would merge UMG with a new acquisition company that would be listed on the New York Stock Exchange, allowing current UMG shareholders to exchange their holdings for cash, shares, or a mix.

Why it matters

The proposed deal reflects Ackman's belief that UMG's stock has been undervalued by public markets, held back by factors like uncertainty around the plans of French conglomerate Bollore, which owns an 18% stake. If successful, the transaction would give Pershing greater control over UMG and allow the music company to tap into public markets and increase dividend payouts.

The details

Pershing's cash and stock offer to UMG shareholders is worth 30.40 euros per share, a 78% premium to UMG's April 2 closing price. Shareholders could choose to receive all cash at 22 euros per share, a 29% premium. To finance the deal, Pershing plans to provide 2.5 billion euros, raise 5.4 billion euros through debt, and monetize UMG's Spotify stake for 1.5 billion euros, some of which will go to UMG artists.

  • Pershing Square announced the proposed transaction on April 9, 2026.
  • Pershing hopes to close the deal by the end of 2026.

The players

Pershing Square

An American hedge fund led by activist investor Bill Ackman, which currently owns around 4.7% of Universal Music Group.

Universal Music Group (UMG)

The world's largest music company, home to top artists like Taylor Swift, The Weeknd, and Lady Gaga.

Bollore

A French conglomerate that owns an 18% stake in Universal Music Group.

Bill Ackman

The founder and CEO of Pershing Square, a prominent activist investor.

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What they’re saying

“UMG's stock price has languished due to a combination of issues that are unrelated to the performance of its music business.”

— Bill Ackman, Founder and CEO, Pershing Square

“Without Bollore, we don't have a transaction. The words I got back were 'these are music to my ears' and with that, we decided to go forward.”

— Bill Ackman, Founder and CEO, Pershing Square

What’s next

Pershing Square has submitted the offer to Universal's board and hopes to close the deal by the end of 2026. The transaction still requires approval from UMG's shareholders and regulators.

The takeaway

This proposed deal reflects Pershing Square's belief that Universal Music Group is undervalued in the public markets, and the hedge fund's desire to take a more active role in shaping the future of the world's largest music company.