Pershing Square’s proposed €55bn acquisition of Universal Music Group (UMG) has suffered a major setback after the Bolloré family, the company’s largest shareholder, publicly voiced opposition to the transaction, according to a report by the Finsancial Times.
Speaking at the Bolloré Group’s annual meeting, chief executive Cyrille Bolloré said he did not support the offer put forward by Bill Ackman’s firm, raising concerns over both valuation and the structure of the proposed deal.
The Bolloré family controls close to one-third of Universal Music Group’s shares, positioning it as a critical stakeholder in any potential takeover of the Amsterdam-listed music company.
Ackman acknowledged the importance of Bolloré’s backing when unveiling the proposal in April, telling investors that support from the French media and industrial group was central to the viability of the transaction.
However, Cyrille Bolloré indicated that the current proposal falls short on several fronts, including the level of cash being committed by Pershing Square and broader questions surrounding governance and strategic alignment.
He also suggested that other shareholders shared similar reservations about the offer.
Universal Music Group, home to artists including Taylor Swift, Olivia Rodrigo and Kendrick Lamar, has not yet formally responded to the bid. Any transaction would ultimately require approval from shareholders representing at least two-thirds of voting rights.
Pershing Square currently owns approximately 5 per cent of UMG, while Tencent remains the second-largest shareholder with an 11.4 per cent stake. Singapore sovereign wealth fund GIC also holds a sizeable position in the company.
Bolloré confirmed that discussions had taken place with both Ackman and Tencent regarding the proposal, but stressed that the family views its holding in Universal as a long-term strategic investment rather than an asset it is seeking to exit.
Under Ackman’s proposal, Pershing Square would acquire UMG through a predominantly stock-based transaction and relocate the company’s primary listing from Amsterdam to New York.
The plan also envisages governance changes, including the appointment of former Disney executive Michael Ovitz as chair and the addition of Pershing representatives to the board.
The proposed takeover comes at a time of heightened uncertainty across the music industry as investors assess the implications of generative AI technologies on music catalogues, artist rights and royalty structures.
UMG shares have fallen since the start of the year amid broader concerns over how AI-generated content could affect the economics of the recording industry.
At the same time, Universal has been moving to deepen its relationship with streaming platform Spotify, including initiatives focused on AI-enabled remixing and cover-generation tools for participating artists.
Pershing Square and Universal Music Group reportedly did not immediately comment further on the latest developments.
