Ackman’s Bid for Universal Music Is a Valuation Fight as Much as a Takeover Attempt

Pershing Square’s unsolicited, non-binding proposal values Universal at about 30.40 euros per share, or roughly 55.75 billion euros ($64.31 billion), representing a 78% premium to the previous closing price. Under the plan, Pershing’s SPARC Holdings would merge with Universal, and the combined company would become a Nevada corporation listed on the New York Stock Exchange. Universal confirmed that its board had received the proposal and said it would review it with advisers, while making clear that it still had full confidence in the company’s strategy and in CEO Sir Lucian Grainge’s leadership.

Ackman’s argument is that Universal’s stock has been held back by structural issues rather than weak operations. Reuters reported that he criticized the company’s underutilized balance sheet and the way it has handled its 2.7 billion-euro Spotify investment, while also arguing that the current Amsterdam listing limits valuation and investor access. That critique lands because Universal’s underlying business has remained strong: the company reported 12.5 billion euros in 2025 revenue, adjusted EBITDA of 2.81 billion euros, and adjusted net profit growth of 7%, even though reported net profit fell because of revaluation effects tied to stakes in Spotify and Tencent Music.

In that sense, the bid is really a bet that market structure can unlock more value than operations alone. Universal had already been pursuing shareholder-friendly measures, including a 500 million-euro share buyback announced at the end of March, and it had previously explored a U.S. listing. But in early March the company put those U.S. listing plans on hold, saying market conditions undervalued the business. Ackman is now trying to solve that problem in a more aggressive way by wrapping a relisting, governance reset, and capital-structure rethink into a single transaction.

The challenge is that the proposal may be financially bold but politically difficult. Reuters noted that the deal would likely require backing from major shareholders including Bollore Group, Vivendi, and Tencent, and analysts have warned that management could resist because the proposal cuts against Universal’s preferred strategy of using M&A to expand in emerging markets. The broader context also shows why the bid is so contentious: Pershing first bought a 10% stake in Universal in 2021, later pushed for a U.S. listing, sold shares to satisfy the process requirements for such a move, and then watched the plan stall in 2026. Ackman’s offer is therefore less a surprise attack than the latest chapter in a multi-year campaign to reshape how the world’s biggest music company is valued and where it belongs in public markets.