Music giant Universal gets $64bn takeover offer

Universal Music Group Eyes $64.3 Billion Takeover Bid

Bill Ackman, CEO of the US investment firm Pershing Square, has proposed acquiring Universal Music Group, the iconic music corporation that oversees artists like Taylor Swift, Kendrick Lamar, and Sabrina Carpenter, in a deal valued at approximately $64.3 billion. The merger would see the combined entity listed on American stock markets, Ackman stated, highlighting his belief in the potential of the transaction to enhance shareholder value.

Universal, the world’s largest music company, operates a vast network of studios, including Abbey Road, and manages influential labels such as EMI and Island Records. Pershing Square already holds a portion of Universal’s shares and is also invested in tech giants like Google and Meta, alongside Restaurant Brands International. The company’s leadership said it would evaluate the bid’s impact on various stakeholders, including employees and artists, while reaffirming its trust in Sir Lucian Grainge and his strategic direction.

Coatsworth, a market analyst at AJ Bell, noted that while Universal appears to be a revenue-generating powerhouse, its performance has been inconsistent. He pointed out that the firm’s stock has struggled despite its strong position in the music industry, which he attributes to challenges like the royalty disputes with streaming platforms. “Universal houses nine of the top ten global recording artists in 2025,” Coatsworth explained, “but slower-than-expected growth in streaming markets has raised concerns about its financial stability.”

“On paper, you might think it’s a money-making machine. In reality, it’s not that simple,” Coatsworth added.

Ackman criticized Universal’s stock performance, citing factors such as the uncertainty surrounding Bolloré Group’s 18% stake and the delay in listing shares on the New York Stock Exchange. The company is currently listed in Amsterdam, and Ackman has long advocated for a US-based flotation. His support for Donald Trump in July 2024 underscored his influence in the business community.

Universal’s share price initially surged by nearly 30% following the announcement, later settling at a 10% increase. The shift in music consumption to platforms like TikTok and Instagram has altered revenue models, prompting Universal to previously consider removing its songs from TikTok over royalty concerns. Ackman praised the company’s efforts to balance AI-driven opportunities with protecting intellectual property and human artists.

The music industry faces additional hurdles, including the rise of deepfakes—AI-generated songs mimicking real artists—that are overwhelming streaming services. Coatsworth emphasized that competition in the sector remains fierce, with labels investing heavily in marketing to maintain visibility in a saturated market.