Large Universal Music Investor Disses Offer from Ackman’s Pershing

Bolloré Group, which holds 40% voting rights in Universal Music, has given a thumbs-down to a $65 billion takeover bid.

May 28, 2026Updated 6 hours ago

Bill Ackman’s road to acquiring Universal Music Group, home to The Beatles’ master recordings, just got longer and more winding.

Influential shareholder Bolloré Group urged UMG on Wednesday to reject a $65 billion takeover bid by the billionaire’s Pershing Square Capital, arguing it undervalues the world’s biggest record label.

All in the Family Conglomerate

No less than Ackman has conceded the approval of Bolloré, a Paris-based conglomerate controlled by its namesake family, is essential to a deal. “Without Bolloré, we don’t have a transaction,” he said last month. As of UMG’s most recent annual report, the company held an 18.5% stake and 40% voting rights.

Ackman has argued Universal’s Amsterdam-listed stock, down 30% in the past 12 months, is undervalued and would have a better home on the New York Stock Exchange, where he wants to shift its listing. But Bolloré is hesitant to part with any of its investment. Music publishing is a capital-light business that earns cash flows from royalties in perpetuity, giving it lasting appeal. “It’s great for protection during economic crises,” CEO Cyrille Bolloré told shareholders.

Bolloré praised Ackman as a “really smart investor,” but had harsh words for Pershing’s ambitions: “I don’t think this offer is positive, I don’t think it would be positive for the company, and I encourage UMG management to reject the offer.” The market didn’t take well to the development:

UMG fell 2.6% to €19.78, considerably less than Pershing’s €30.40 cash-and-stock bid in April. The stock remains below its IPO debut almost five years ago.
In addition to lacking a US listing, Pershing argues UMG management has underutilized the company’s balance sheet, whose assets include a library featuring Lady Gaga, Taylor Swift, Frank Sinatra and The Rolling Stones.

The Beef Business: UMG is also home to Kendrick Lamar and Drake, making it the uncontested winner of the two rappers’ high-profile feuding. As for any beef with Ackman, UMG has signaled it takes his concerns about market value seriously and is open to addressing them. In April, the company said it would increase its share buyback program and sell half of its roughly 3% stake in Spotify, worth about $1.4 billion (Pershing has advocated for selling the whole thing). Maybe both sides could finally come together.