Universal Music Group Board Rejects Pershing Square Proposal, Backs Long-Term Growth Strategy

Universal Music Group (UMG) has unanimously rejected an unsolicited proposal from Pershing Square Capital Management, saying the offer significantly undervalued the company and failed to provide superior value for shareholders and stakeholders.

In a statement issued on May 29, UMG said its Board of Directors conducted a detailed review of the non-binding proposal submitted by Pershing Square on April 7, 2026, with the assistance of external financial and legal advisors.

Following the assessment, the board concluded that the proposal was not in the best interests of UMG, its shareholders, artists, songwriters, employees, and other stakeholders.

The music giant stated that the proposal “fundamentally and materially undervalues” UMG and does not offer a compelling path for long-term value creation. The company added that it had consulted with shareholders and other stakeholders and found broad support for the board’s decision.

The development marks a significant moment for the world’s largest music company, which has increasingly focused on strengthening its market position through strategic investments, artist-centric initiatives and technology-led growth.

Defending the company’s current direction, UMG highlighted its performance since becoming a publicly listed company in 2021. The company reported revenue growth of 60% and an increase of nearly 70% in adjusted EBITDA during the period, while maintaining healthy returns on equity.

UMG also pointed to its continued dominance across the music ecosystem. In 2025, the company captured a 33% share of the global recorded music market, its highest level in 12 years  and a 24% share of music publishing, the largest since market-share tracking began in 2010.

For the third consecutive year, UMG artists occupied nine of the top ten positions on the annual IFPI Global Artist Chart.

Commenting on the decision, UMG Chairman and CEO Sir Lucian Grainge said the company remains focused on attracting world-class talent, deepening fan engagement and creating long-term value through innovation and strategic execution.

Board Chair Sherry Lansing reaffirmed the board’s confidence in management, describing UMG’s position in the music industry as “unrivalled” and citing the company’s strong track record of execution and sustainable growth.

The company also noted that it continues to actively evaluate its financial and business strategy. Recent measures include the expansion of its share buyback programme, plans to monetize half of its equity stake in Spotify, and efforts to provide enhanced financial disclosures to investors.

UMG said these initiatives had already been under consideration for several months and would remain part of an ongoing review process as the company navigates a rapidly evolving music and technology landscape.

The rejection of Pershing Square’s proposal underscores UMG’s confidence in its standalone growth strategy and signals the board’s belief that the company is better positioned to create value independently as it continues to lead the global music business.