Pershing Square Proposes $64 Billion Merger with Universal Music and Acquisition Company

Rowan Ashford

Published: April 7, 2026 6:39 AM ET

Pershing Square Proposes $64 Billion Merger with Universal Music and Acquisition Company

Bill Ackman’s Pershing Square has proposed a significant merger with Universal Music Group (UMG), which could reshape the landscape for the world’s largest music label. The plan aims to create a new entity by merging Pershing’s acquisition vehicle with UMG, intending to list it on the New York Stock Exchange.

Key Details of the Proposed Merger

The proposal values Universal Music at approximately €30.40 per share. This represents a remarkable 78% premium over UMG’s last closing price of €17.10. Overall, the deal is estimated to be worth €55.75 billion ($64.31 billion).

Impact on Universal Music Group

Universal Music is home to several high-profile artists, including Taylor Swift and Billie Eilish. Following the announcement of this merger, shares of Universal Music jumped nearly 13% in early trading. The top shareholder, Bollore Group, also saw an increase of 6% in its share price.

Strategic Importance of the U.S. Listing

The merger proposal comes after UMG postponed its planned U.S. listing last month. Ackman believes that a New York listing would enhance UMG’s liquidity and share price stability. He praised UMG management’s performance but highlighted concerns about the share price decline since its 2021 listing. Ackman cited factors such as uncertainty regarding Bollore Group’s 18% stake and the underutilization of UMG’s financial resources.

Terms of the Transaction

Each UMG shareholder would receive €9.4 billion in cash and 0.77 shares in the new company for each UMG share held.
The cash portion will be financed through Pershing’s rights holders, debt, and the proceeds from its stake in Spotify.
Michael Ovitz, the former president of Walt Disney Company, is set to join the UMG board as chairman.

Expected Timeline

The transaction is anticipated to close by the end of this year. Pershing Square currently holds a 4.7% stake in UMG, making it the fourth-largest shareholder. Both Vivendi and Tencent Holdings, significant shareholders in UMG, have yet to comment on the merger proposal.

This merger proposal represents a bold move that could significantly impact the future of UMG and the overall music industry, as it seeks to bolster UMG’s market position and investor confidence.