Music giant UMG turns down multibillion-dollar buyout

Universal Music Group (UMG) has rejected a multibillion-dollar takeover offer from Pershing Square, stating that the proposal “fundamentally and materially undervalues” the company.

The offer, reportedly worth about $65 billion, was made by billionaire investor Bill Ackman through Pershing Square, which already holds a stake in UMG. The proposal was first submitted on April 7 and was declined on Friday, May 29.

UMG said the bid was not in the “best interests” of its shareholders, artists, and songwriters.

The company represents some of the world’s leading artists, including Taylor Swift, Sabrina Carpenter, Kendrick Lamar, Ariana Grande, Billie Eilish, and The Weeknd, as well as Jonas Brothers, John Legend, and Noah Kahan. Its portfolio also includes major labels such as EMI, Republic Records, and Capitol Music Group.

Sherry Lansing, chairwoman of the UMG board, said: “UMG has built an unrivalled position in the music industry through clear vision and strong execution.

“The board has full confidence in (chairman and chief executive) Sir Lucian (Grainge) and his team's ability to deliver sustainable growth and continued value creation for all stakeholders.”

Lucian Grainge also reaffirmed the company’s long-term strategy, stating: “We remain committed to leading the industry by attracting the world's top talent, deepening fan engagement globally and driving innovation.

“Central to that mission is fostering an environment that champions human creativity, protects artists, songwriters and entrepreneurs, and expands opportunities for growth and success.

“As we execute our strategy and deliver maximum long-term value, we look forward to providing shareholders with greater insight into the drivers of our performance and future direction of our business.”

By Tamilla Hasanova