Bill Ackman is moving to divest his remaining stake in Universal Music Group (UMG) after the company refused his takeover proposal. The planned sale involves about 80.6 million shares, which are expected to be offered at up to 18.62 euros each, signaling Ackman’s complete exit from his five-year investment in the music giant.
Ackman’s involvement with UMG began in 2021 when his firm, Pershing Square, acquired a 7.1 percent share for approximately $2.8 billion. Prior to this, Ackman had attempted to gain control through a special purpose acquisition company (SPAC). After the stake purchase, he joined UMG’s board but stepped down the previous year.
His acquisition bid surfaced in April, proposing a $64 billion deal. Ackman argued the offer was justified amid what he described as unrelated issues that had hindered UMG’s stock performance. One key element of his strategy included shifting UMG’s stock listing from the European exchange Euronext to the New York Stock Exchange.
The bid faced swift opposition from UMG’s leadership, with CEO Lucian Grainge and Cyrille Bolloré, the CEO of one of UMG’s largest shareholders, both publicly supporting the board’s stance. The board formally declined Ackman’s offer, stating it undervalued the company and would not generate greater value for shareholders.
This move signals the end of Ackman’s active pursuit of control over UMG, marking the closure of a complex chapter between the activist investor and the world’s largest music company.