April 07, (THEWILL) — Universal Music Group, home to stars like Taylor Swift, Kendrick Lamar, and Sabrina Carpenter, has received a $64.3 billion (£48 billion) takeover offer from US investment firm, Pershing Square.
Pershing Square, led by billionaire, Bill Ackman, already owns a stake in Universal and has investments in Google, Meta, Amazon, and Restaurant Brands International, which includes Burger King.
The plan is to merge Universal into a new company listed in the United States.
Universal also owns labels like EMI and Island Records and runs the iconic Abbey Road Studios.
Ackman praised Universal for building a “world-class artist roster” and said the company has embraced new opportunities, including artificial intelligence, while protecting its artists’ work.
He added that the company’s stock price had fallen due to reasons outside the music business, which could be “addressed with this transaction.”
The proposed deal would give Universal shareholders cash and shares in the new company. Ackman also said the board would include Michael Ovitz, former Disney president.
Universal’s shares initially jumped nearly 30% after the news before settling around 11% higher. The company has not commented.
Industry observers note that Universal is home to nine of the top ten global artists of 2025, though slower growth in music streaming and competition from platforms like TikTok could affect profits.
Evi Ben Ezaga writes on entertainment, culture, and trending stories.
