Universal Music Receives $64bn Takeover Bid From Pershing Square

Universal Music Group has received a takeover offer valued at approximately $64.3bn (£48bn), in a potential deal that could reshape the global music industry.

The bid has been made by Pershing Square Capital Management, whose billionaire chief executive Bill Ackman said the proposal would involve a merger and lead to the combined company being listed in the United States. Pershing Square already holds a stake in Universal.

Universal Music, the world’s largest music company, represents a wide roster of global stars including Taylor Swift, Sabrina Carpenter and Kendrick Lamar. It also owns iconic assets such as Abbey Road Studios and major record labels including EMI and Island Records.

The company has yet to respond publicly to the offer.

Ackman praised Universal’s leadership, saying it had built a “world-class artist roster” and delivered strong business performance. He added that the company had successfully adapted to industry changes, particularly by embracing opportunities presented by artificial intelligence while safeguarding intellectual property.

However, he argued that Universal’s stock had underperformed due to factors unrelated to its core business, suggesting these issues could be resolved through the proposed transaction.

Pershing Square’s broader investment portfolio includes stakes in major technology firms such as Google, Meta Platforms and Amazon, as well as Restaurant Brands International, the parent company of Burger King.

Market analysts note that while Universal dominates the global music industry—home to nine of the top 10 recording artists of 2025—its revenue growth is closely tied to streaming platforms like Spotify and Apple Music, where slower-than-expected growth has raised concerns.

Although global music revenues have rebounded in recent years thanks to streaming subscriptions, debates continue over royalty payments to artists. At the same time, the rise of AI-generated deepfake music—where fraudsters imitate established artists—has emerged as a growing challenge for the industry.

In a letter to Universal’s board, Ackman said the company had “dramatically underperformed” key stock indexes, citing uncertainty around a significant stake held by Bolloré Group, controlled by billionaire Vincent Bolloré, as well as delays to a planned New York listing.