Overview
- UMG’s board unanimously rejected Pershing Square’s unsolicited proposal on May 29, saying the offer “fundamentally and materially undervalues” the company and is not in shareholders’ or artists’ best interests.
- Pershing Square first proposed a cash-and-stock deal on April 7 that valued UMG at about €30.40 per share and included roughly €9.4 billion in cash, with a plan to list the combined company in New York.
- Major shareholder Bolloré publicly urged the board to turn down the bid, a stance that undercuts the chance a takeover could win the shareholder approvals required, and Pershing Square did not immediately respond to UMG’s rejection.
- UMG answered the offer by expanding a share buyback program, announcing plans to monetize half its Spotify equity stake and committing to provide enhanced financial disclosure while stressing strong post‑listing revenue and adjusted EBITDA growth.
- The bid is effectively stalled unless Pershing Square wins backing from large shareholders or revises its terms, a result that could shape future debate over UMG’s listing location, capital allocation and how the company manages streaming and AI risks.