• Bill Ackman's Pershing Square proposes a takeover bid for Universal Music Group valued at $64 billion.
• The offer includes €9.4 billion in cash and stock, valuing shares at approximately €30.40 each.
• Universal Music has seen its shares increase by over 11% following the announcement of the bid.

Bill Ackman's Pershing Square has announced a proposed takeover of Universal Music Group (UMG), with an estimated total deal value of about $64 billion. The offer consists of a cash-and-stock transaction that values UMG shares at approximately €30.40, which represents a significant premium over its last closing price of €17.10. Ackman described UMG as undervalued within the stock market in a formal letter to the company's board, stating, "UMG's stock price has languished due to a combination of issues that are unrelated to the performance of its music business," according to Reuters, BBC, and CBS News.

The acquisition would include 9.4 billion euros in cash in addition to a share swap for UMG shareholders. Upon completion, the new entity would be listed on the New York Stock Exchange, which Ackman argues will enhance liquidity and attract more investors. UMG, the music giant managing a diverse roster of artists, including Taylor Swift and Billie Eilish, has been facing challenges with its stock performance primarily due to external uncertainties and strategic limitations, as noted by Bangkok Post and Al Jazeera.

The merger is anticipated to conclude by the end of 2026, as Ackman and his team have proposed various strategies to strengthen UMG's business operations, including an aim to increase dividend payouts annually. Ackman’s firm already holds a significant stake in UMG, emphasizing his long-term interest in enhancing the company’s market position, as highlighted by multiple sources, including Reuters and BBC.

Universal Music's stock price experienced an uptick, climbing over 11% following the takeover announcement, indicating positive market reception. Ackman’s proposed plan includes not only dealing with current management but also involving notable figures like Michael Ovitz in the board restructuring to enhance governance and leverage industry experience, according to CBS News and Al Jazeera.