Taylor Swiftâs Label, UMG, Receives $64B Bid From Bill Ackman
Taylor Swiftâs Label, UMG, Receives $64B Bid From Bill AckmanEvolve EditorsWed, April 8, 2026 at 10:14 AM UTC
0
(Photo Credit: Monica Schipper/Getty Images)
Bill Ackmanâs hedge fund has made a bold move, proposing a $64 billion merger deal with Universal Music Group (UMG), the worldâs largest music label. The merger would unite UMGâs impressive roster of artists, including Taylor Swift, Billie Eilish, and Kendrick Lamar, with Pershing Squareâs investment expertise.
Billionaire Bill Ackman bids for Taylor Swiftâs label, UMG
Bill Ackmanâs Pershing Square Capital Management is making waves with a $64 billion proposal to merge with UMG. The deal values UMG at around $35 per share, a 78% premium to its last closing price, and would see the company listed on the New York Stock Exchange.
The proposed merger would involve Pershing Squareâs SPARC Holdings uniting with UMG, with its shareholders receiving $10.85 billion in cash and 0.77 shares in the new company for every share held. Michael Ovitz, former Disney president, would join as board chair, and Lucian Grainge would remain UMGâs CEO.
Interestingly, UMG shares jumped 11% on the news of Bill Ackmanâs $64 billion takeover proposal, reflecting the marketâs enthusiasm for the deal. Additionally, Vivendi and BollorĂ© also rose 11% and 6.3% respectively, on news of the proposal.
For those unaware, UMG was spun off from Vivendi SE in 2021. It debuted on Euronext Amsterdam with a $53.18 billion valuation.
Advertisement
As reported on Bloomberg News, UMGâs stock remains below Bill Ackmanâs proposed buyout price despite the initial surge, raising doubts about the dealâs feasibility. Getting key shareholders like Vincent BollorĂ© on board is crucial, as he holds over 18% of the company.
However, analysts arenât optimistic about the proposalâs chances. Without BollorĂ©âs support, Ackmanâs âproposal looks very much dead from the start,â says Nicolas Marmurek, an analyst at Square Global.
Meanwhile, Bill Ackman claims he has already spoken with BollorĂ©. He said that the proposal has âintriguedâ the media mogul, but itâs unclear if heâll back it. Ackman also thinks UMGâs stock remains undervalued due to non-music-related issues that the deal could fix.
As of now, UMG and Bolloré have not responded to comment requests. Vivendi, on the other hand, has declined to comment.
Originally reported by Sibanee Gogoi on Mandatory.
The post Taylor Swiftâs Label, UMG, Receives $64B Bid From Bill Ackman appeared first on Reality Tea.
Source: âAOL Entertainmentâ