Universal Music Group's board of directors expressed complete confidence in its leadership following an unsolicited takeover bid from Pershing Square. The investment firm, led by Bill Ackman, proposed acquiring UMG in a deal valuing the company at more than $60 billion. The board said it would review the non-binding offer in line with its fiduciary duties.
Universal Music Group (UMG) confirmed receipt of an unsolicited and non-binding proposal from Pershing Square to acquire the company. In a press release, the board stated it has complete confidence in UMG's strategy and the leadership of chairman and CEO Sir Lucian Grainge and the management team. The board, along with its advisors, plans to review the proposal and analyze its implications for shareholders, employees, artists, songwriters, and other stakeholders. UMG will not comment further until the review concludes. The bid, announced on April 7, offers shareholders 9.4 billion euros ($10.85 billion) in cash, or 5.05 euros ($5.82) per share. It would merge UMG with Pershing Square SPARC Holdings, relocate headquarters from the Netherlands to Nevada, and list the stock on the New York Stock Exchange instead of Euronext Amsterdam. Pershing Square values UMG at over $60 billion. Bill Ackman, founder of Pershing Square, highlighted in a letter to the board that UMG's strong business performance contrasts with its lagging share price. He cited uncertainty around Bolloré Group's 18% stake, a delayed U.S. stock offering, and underused balance sheet capacity as factors, none related to the music operations. Ackman noted these could be resolved through the merger and held a call with analysts and shareholders on April 7, expecting closure by year-end.
