Universal Music Rejects €55.75 Billion Offer Valuing Shares at €30.40
PS•Universal Music Group’s board unanimously rejected Pershing Square’s €55.75 billion cash-and-stock bid valuing shares at €30.40 each, calling it materially undervalued. The company highlighted 60% revenue and 70% adjusted EBITDA growth since 2021, an expanded share buyback and plans to monetize half its Spotify stake.
1. Board Rejects €55.75 Billion Bid
Universal Music Group’s board unanimously rejected Pershing Square’s unsolicited €55.75 billion cash-and-stock proposal that valued shares at €30.40 each, stating the offer materially undervalued the company and failed to deliver superior value for shareholders and stakeholders.
2. Strong Financial Track Record
Since its 2021 public listing, UMG has achieved 60% revenue growth and nearly 70% adjusted EBITDA increase, while securing a 33% share of recorded music and a record 24% share in music publishing for 2025.
3. Shareholder Value Initiatives
The company expanded its share buyback program and unveiled plans to monetize half of its equity stake in Spotify, alongside commitments to enhance financial disclosure for improved market assessment.
4. Leadership Confidence and Outlook
Board Chair Sherry Lansing and CEO Lucian Grainge emphasized UMG’s clear vision, industry-leading position and focus on sustainable growth, talent acquisition and fan engagement to drive long-term value creation.
