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Pershing Square Sells Out of Universal Music After Bid Rejection

Pershing Square’s rapid placement of roughly 80 million shares ends its pressure campaign and leaves UMG’s board and the Bolloré shareholder bloc in control.

Overview

  • Pershing Square placed about 80–80.6 million UMG shares in an overnight sale, effectively exiting a roughly 4.5% holding that Pershing had built from 2021 and later trimmed.
  • Universal Music repurchased 14,156,285 of those shares for €17.66 each, paying about €250 million from an extra repurchase authority granted in May.
  • UMG’s board had unanimously rejected Pershing’s unsolicited €55.75 billion cash-and-stock takeover proposal on May 29, saying the offer materially undervalued the company, and the Bolloré family publicly urged the board to decline the bid.
  • The sale triggered a sharp market reaction with UMG shares falling about 7–8% in early European trading on Thursday as the market absorbed the large block and the prospect of activist-driven change faded.
  • The exit removes Pershing’s public push for a U.S. listing and monetization of UMG’s Spotify stake, reinforces Bolloré’s controlling influence over strategy, and leaves analysts focused on how buybacks and balance-sheet moves will affect investor returns.