Billionaire investor Bill Ackman is exiting Universal Music Group, with his hedge fund Pershing Square selling its remaining stake in the world’s largest music company via an overnight block trade, marking a full departure from a five-year position.
Billionaire investor Bill Ackman exits Universal Music Group after five years, selling his remaining stake in the company.
The move comes about a year after Universal Music Group’s board rejected Ackman’s ambitious takeover proposal, which had valued the company at roughly €55 billion to €65 billion. UMG leadership pushed back at the time, arguing the offer significantly undervalued the company’s long-term potential.
Ackman, however, maintained that the business was being underestimated, though he was ultimately unable to convince the board to engage.
Pershing Square is now unloading approximately 80.6 million shares in the music giant, whose roster includes global stars such as Taylor Swift and Drake. The exit is expected to generate at least $600 million in profit for the fund, including dividends accumulated over the holding period—delivering a strong return on an investment that began shortly after UMG’s 2021 spin-off from Vivendi.
Following the announcement, UMG shares fell as markets reacted to the departure of a major long-term shareholder.
Ackman had previously built a near 10% stake in the company and even served on its board before stepping down amid strategic disagreements. At one point, he had also pushed for a potential U.S. listing as part of a broader vision for the company’s growth.
While his takeover ambitions ultimately fell short, the investment is expected to rank among Pershing Square’s more successful media trades. UMG itself has also participated in buybacks from the fund, helping facilitate the gradual exit.
Attention now shifts to CEO Sir Lucian Grainge as Universal Music Group continues navigating a rapidly changing industry landscape—balancing streaming growth pressures with rising uncertainty over how artificial intelligence could reshape music creation, rights, and revenue models.
