Bill Ackman sold a significant portion of his stake in Universal Music Group (UMG) through his fund Pershing Square after the music company's board rejected his takeover bid earlier this year [1, 2].
The bid, announced in April 2026 and valued at about €55.75 billion, was dismissed by UMG's board in early June because they said it "fundamentally and materially undervalues UMG and will not deliver superior value creation" [1, 2]. UMG CEO Cyrille Bolloré said "the price was not there at all," reflecting the largest shareholder Bolloré family's opposition to the offer; they hold an 18% stake that influenced the rejection [1].
Following the rejection, Pershing Square placed approximately 80.6 million UMG shares in an overnight offering aiming to earn more than US$600 million in profits [1, 2]. Meanwhile, UMG repurchased about 14 million ordinary shares from Pershing Square at around €17.66 per share [1, 2]. Despite shares dropping nearly 7% immediately after the placement, they remained above Ackman's offer price [1, 2].
Ackman started acquiring his stake in UMG in 2021 and joined the company's board a year later in 2022 before resigning in 2025 [1, 2]. Before the sale, Pershing Square held about 4.7% of UMG shares [1].
The music industry's value has grown due to streaming, but recent growth has slowed. Additionally, emerging challenges such as AI tools add uncertainty to the sector's outlook [2].
Pershing Square's overnight share placement and UMG's buyback took place on June 4, 2026, months after the bid's rejection [1, 2].
