Universal Music Group Rejects Pershing Square Proposal

Universal Music

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(RTTNews) - Universal Music Group N.V. (UMG.AS, UNVGY, UMGNF), the Dutch-American music-based entertainment company, announced that its Board of Directors has unanimously determined that the unsolicited and non-binding proposal received from Pershing Square Capital Management, L.P. on April 7, 2026, is not in the best interests of UMG, its shareholders, artists, songwriters, employees, and other stakeholders. The Board rejected the proposal on the grounds that it fundamentally and materially undervalues UMG and would not deliver superior value creation.

UMG recently initiated and expanded its share buyback program, announced plans to monetize half of its equity stake in Spotify, and committed to providing enhanced financial disclosure to allow the market to better assess and understand its business. These initiatives have been under consideration by the Board and management for several months and will remain under continuous review.

In April 2026, Pershing Square Capital Management, L.P. announced that it had submitted a non-binding proposal to acquire all outstanding shares of UMG through a business combination transaction. Under the proposed deal, UMG would merge with Pershing Square SPARC Holdings, Ltd., becoming a Nevada corporation listed on the New York Stock Exchange. Pershing anticipated closing the transaction by year-end. The offer included a total of 9.4 billion euros in cash, equivalent to 5.05 euros per share, plus 0.77 shares of New UMG stock for each UMG share held. The combined cash and stock package was estimated at 30.40 euros per share, representing a 78% premium to UMG's stock price at the time.

UMG.AS closed Friday's regular trading at EUR 19.50 up EUR 0.08 or 0.44%.