By Katherine Sayre

Universal Music Group rejected Bill Ackman-led Pershing Square Capital's bid to buy the world's largest music company for about $65 billion Friday, after Universal's largest shareholder voiced opposition.

UMG's board of directors assessed Pershing Square's unsolicited offer and found that it "fundamentally and materially undervalues UMG and will not deliver superior value creation."

"UMG has built an unrivalled position in the music industry through clear vision and execution," said board chair Sherry Lansing in a statement, adding that the board has "full confidence" in Chief Executive Lucian Grainge and his team.

Ackman couldn't immediately be reached for comment.

Cyrille Bollore, chief executive of top UMG shareholder the Bollore Group, had urged the company to rebuff the offer, arguing that Ackman's proposal undervalued it. The family of French billionaire Vincent Bollore has a roughly 18.5% stake in Universal and nearly 40% of voting rights.

Shares of Universal -- which works with artists including Taylor Swift, Kendrick Lamar and Billie Eilish -- are down about 30% over the past 12 months. Like its peers, Universal has faced pressure over the rise of artificial intelligence in song creation and slowing streaming.

When Ackman announced his offer last month, he said the company's stock price "has languished due to a combination of issues that are unrelated to the performance of its music business," which he said the deal would address. However, he told investors that "without Bollore, we don't have a transaction."

Ackman had praised Grainge's leadership, saying the company continues to build its artist roster, signed revenue-driving deals with streaming platforms and has harnessed artificial-intelligence opportunities while protecting the company's and artists' intellectual property.

But he cited issues, including the company's recent postponement of a U.S. listing and underutilization of its balance sheet. Ackman was seeking to merge Universal with Pershing Square Sparc Holdings and move the new entity to a U.S. listing. Universal has operational headquarters in Santa Monica and corporate headquarters in Hilversum, Netherlands, trading on the Euronext Amsterdam.

Universal started grading on the Euronext Amsterdam in September 2021 after a spinoff from Vivendi, the conglomerate steered by the Bollore family. Ackman has noted that revenue has grown 60% since it started trading on the Euronext Amsterdam in 2021, but the company's share price has still lagged.

Write to Katherine Sayre at katherine.sayre@wsj.com

(END) Dow Jones Newswires

May 29, 2026 14:12 ET (18:12 GMT)

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