Universal Music Group (UMG) has announced the repurchase of over 14 million shares from Bill Ackman’s Pershing Square, marking the end of a five-year relationship with the billionaire investor. This move follows the rejection of Ackman’s ambitious $64 billion takeover proposal for the music giant.

Failed Takeover Bid

Pershing Square had initially sought to sell approximately 80.6 million UMG shares, aiming to secure at least $600 million in profits. However, Ackman’s unsolicited bid, which valued UMG at around €55.75 billion, was turned down by the company’s board last month. The board, influenced by the Bolloré family—UMG’s largest shareholder with an 18% stake—believed the offer significantly undervalued the company.

UMG, home to renowned artists such as Taylor Swift and Kendrick Lamar, repurchased the shares for roughly €250 million ($290.6 million) at €17.66 per share. This decision comes amid a challenging period for UMG, with its shares, listed in Amsterdam, experiencing a near 7% drop by mid-morning trading, adding to a 20% decline since January.

Pershing’s Exit

Bill Ackman’s involvement with UMG began in 2021 when he first invested in the company and joined its board the following year. Despite initially praising UMG’s business model and management, Ackman grew frustrated over the company’s share price performance and the influence of the Bolloré family. His resignation from the board in 2025 underscored these tensions.

Pershing Square’s decision to exit UMG reflects a broader strategy as Ackman, known for his aggressive activist campaigns, reassesses his investment portfolio. The failed bid and subsequent share sale highlight the complexities and challenges of navigating high-stakes corporate acquisitions.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.