Universal Music Group has formally rejected a takeover approach from billionaire investor William Ackman, a decision welcomed by the London Stock Exchange as a victory for corporate independence. The board of Universal, the world’s largest music company, said the unsolicited offer undervalued the firm and its long-term growth prospects. Ackman, through his special purpose acquisition company Pershing Square Tontine Holdings, had proposed a deal valuing Universal at approximately $40bn.
In a statement, the Universal board said it had considered the proposal carefully but concluded it was not in the best interests of shareholders, artists or the broader music industry. The rejection was met with approval from the London Stock Exchange, which had faced criticism over the potential loss of a major listing. Universal, which floated in Amsterdam in 2021, has been a bellwether for the European music sector.
Analysts said the board’s decision reflected a broader trend of companies resisting takeover bids that fail to capture their full strategic value. The news sent Universal shares up 2.3% in afternoon trading.
