Revealed On 7 Apr 2026
Billionaire investor Invoice Ackman’s Pershing Sq. has proposed a takeover of Common Music Group in a $64bn deal, the most recent twist in his practically five-year quest for the music label big.
Pershing Sq. proposed a cash-and-shares provide on Tuesday by its acquisition automobile that values Common Music at about 30.40 euros ($35) per share, a 78 p.c premium to the final closing worth of 17.10 euros ($20), making the deal value 55.75 billion euros ($64.31bn).
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Common Music Group (UMG) – the corporate behind worldwide superstars, together with Taylor Swift, Billie Eilish and Kendrick Lamar – is predicted to maneuver its itemizing to New York from Amsterdam, paving the best way for extra buyers, together with index funds, to personal the corporate and finally result in extra strong earnings and a better valuation.
Common Music declined a Reuters information company request for remark.
For Ackman, one of many world’s most voluble buyers, who cemented his fame and fortune as an activist investor, forcefully pushing company America to undertake adjustments, this can be a far friendlier method, buyers and trade analysts mentioned.
Even because the music trade is flourishing, UMG’s share worth has lagged, one thing Ackman is pledging to repair with this proposed deal.
Ackman’s letter to Common Music Group’s board carried a combined tone, at occasions complimentary of present administration, led by chairman and chief govt Lucian Grainge, and significant of the corporate’s “underutilized steadiness sheet” and dealing with of its 2.7 billion euro ($3.1bn) funding in Spotify Expertise.
Fears of AI disrupting the music trade have performed a job in UMG’s lacklustre efficiency. Its share of the music market has been sliding, and streaming progress is decelerating, Wells Fargo analysts famous. In March, UMG delayed its plans for a US itemizing.
Nonetheless, Ackman will want the assist of UMG’s prime shareholders – Bollore Group, which holds an 18.5 p.c stake, and Vivendi, which owns 13.4 p.c – to push by any transaction. China’s Tencent is a big shareholder. French billionaire Vincent Bollore’s household controls 80 p.c of UMG’s voting rights.
Outdated goal
Ackman first flirted with Common Music Group in 2021, when his Pershing Sq. Tontine Holdings, a shell company created to take a personal firm public, zeroed in on its goal. However Ackman shelved the complicated deal within the wake of heavy US regulatory scrutiny. As a substitute, Pershing Sq. grew to become certainly one of UMG’s greatest buyers in 2021, and Ackman sat on its board till final 12 months.
Put up transaction, Ackman mentioned Grainge ought to stay Common Music’s chief govt.
Ackman mentioned he and former Hollywood super-agent Michael Ovitz met with Grainge over dinner “a few weeks in the past” to debate the potential merger.
“Lucian inspired us to ship it in,” Ackman mentioned.
Ackman proposed including new administrators, together with Ovitz – who shepherded the careers of Madonna and Michael Jackson – who would change into the board chair. Moreover, two representatives from Pershing Sq. would get seats, he mentioned, not saying but whether or not he can be one of many administrators.
Shares of UMG, which is listed in Amsterdam, had been up 13 p.c on Tuesday, whereas Bollore Group climbed 5 p.c. Shares in Vivendi had been up greater than 10 p.c.
Pershing purchased a ten p.c stake in UMG from Vivendi forward of its 2021 Amsterdam IPO and has since repeatedly pressed for a New York itemizing, arguing it will increase UMG’s share worth and liquidity.
Pershing at the moment has a 4.7 p.c stake, making it UMG’s fourth-biggest shareholder.
UMG’s shares have misplaced virtually a 3rd of their worth since its IPO.
At the same time as international music revenues develop 12 months after 12 months, UMG and different main labels, like Sony and Warner Music, are scrambling to remain aggressive as streaming providers from Spotify, Amazon, Apple and Deezer take an ever better share.
They’re now additionally contending with disruptions introduced on by the enlargement of AI – from copyright disputes to the appearance of song-generating AI instruments – that threaten to upend how music is created, consumed and monetised.
One survey final 12 months discovered {that a} staggering 97 p.c of listeners may distinguish between AI-generated and human-composed songs.
Beneath Tuesday’s proposal, Pershing’s SPARC Holdings would merge with UMG, and the brand new entity would change into a Nevada company listed on the New York Inventory Alternate.
