Key Highlights
- Pershing Square, led by Bill Ackman, has submitted a non-binding $64 billion merger proposal targeting Universal Music Group through its SPARC Holdings platform.
- The proposal prices UMG shares at €30.40 each—representing a substantial 78% premium over the previous closing price of €17.10.
- Shares of UMG climbed approximately 13% following the announcement; Bollore Group, the company’s largest investor, gained around 6%.
- The proposed combined company, called “Nevada Corporation,” would trade on the New York Stock Exchange.
- Media executive Michael Ovitz, previously with Disney, is slated to become board chairman if the transaction proceeds.
Bill Ackman’s investment firm Pershing Square has submitted a staggering $64 billion acquisition proposal for Universal Music Group, outlining plans to combine its SPARC Holdings special purpose vehicle with the music powerhouse currently trading in Amsterdam—a transaction designed to secure UMG a coveted Wall Street listing.
Pershing Square offers to buy Universal Music group for €9.4 billion in cash plus shares https://t.co/ecL23cvvJ4
— Bloomberg (@business) April 7, 2026
The combined cash-and-equity proposal establishes a valuation of €30.40 for each UMG share—marking a striking 78% premium above the €17.10 closing price from Monday. Trading activity Tuesday morning saw UMG shares surge approximately 13%. Meanwhile, Bollore Group, which holds UMG’s largest ownership position, experienced a stock increase of roughly 6%.
Universal Music Group has not yet issued a statement regarding the proposal.
The offer remains non-binding at this stage. According to the proposal’s structure, current UMG shareholders would collect €9.4 billion in cash compensation alongside 0.77 shares of the newly formed Nevada Corporation for each UMG share they currently own.
Pershing intends to secure the cash component through capital commitments from SPARC rights holders, leveraged financing arrangements, and liquidating its ownership position in Spotify.
The resulting entity—Nevada Corporation—would establish its primary listing on the New York Stock Exchange, finally delivering the American market presence that Ackman has consistently advocated for.
Ackman’s Strategic Rationale Behind the Proposal
In his formal correspondence to UMG’s board of directors, Ackman praised management for their “excellent” stewardship of operations. However, he identified the disappointing stock performance since the company’s 2021 Amsterdam debut as a fundamental challenge requiring attention.
Ackman highlighted three particular concerns: market anxiety surrounding Bollore Group’s 18% ownership stake, the postponement of UMG’s previously planned American listing, and what he characterized as insufficient leverage of the company’s financial resources.
Just weeks ago, Universal Music Group abandoned a previous arrangement with Pershing regarding pursuit of a U.S. stock exchange listing—a decision that seemingly catalyzed Tuesday’s comprehensive merger proposition.
According to LSEG records, Pershing currently maintains a 4.7% ownership position in UMG, establishing it as the fourth-largest institutional shareholder.
Major Stakeholders Remain Silent
Bollore Group, controlling 18% of Universal Music Group, has not publicly addressed the proposal. Vivendi, occupying the second-largest shareholder position, similarly declined comment. Tencent Holdings, the third-largest institutional owner, has yet to respond to inquiries.
Their stance will prove critical. A transaction of this magnitude requires substantial shareholder consensus to advance.
Michael Ovitz, renowned talent representative and former Walt Disney Company president, is designated to assume the role of UMG board chairman should the merger successfully conclude.
Pershing Square has indicated expectations for transaction completion by the conclusion of 2026.
