Bolloré Rejects Ackman's $64 Billion Universal Music Bid, Calling It Undervalued and 'Not Beneficial'
Cyrille Bolloré, the largest shareholder of Universal Music Group, has publicly urged the company's management to reject a $64 billion takeover proposal from billionaire activist investor Bill Ackman, arguing the offer significantly undervalues the music giant.
Bolloré's public rejection
Cyrille Bolloré, CEO of the Bolloré Group, publicly called on Universal Music Group's (UMG) management to reject a takeover bid from Bill Ackman's Pershing Square during a shareholders' meeting on Wednesday. Bolloré stated the offer, which values UMG at approximately 55.8 billion euros ($64.4 billion), was not high enough. "We think the price is not there at all," Bolloré told shareholders, marking his first public comments on the proposal since it was made in April.
He is not making an offer with his own money. It is our money, the company's money.
Bolloré also questioned whether Ackman's management style was compatible with the record label's long-term strategy, describing the activist investor as "more abrupt, faster." He concluded by saying he considered the offer as good as already rejected.
The structure of the deal
Ackman's non-binding proposal, submitted in April, offered shareholders 9.4 billion euros ($10.85 billion) in cash and 0.77 shares of new stock for each UMG share held, at a price of 30.40 euros per share. This represented a 78% premium to UMG's closing price on April 2. The plan also included relocating UMG's primary listing from Euronext Amsterdam to the New York Stock Exchange and moving its headquarters to the United States, a shift Ackman argued would attract a broader pool of institutional investors and improve liquidity.
Without Bolloré, we don't have a transaction.
Ackman, whose Pershing Square owns approximately 4.7% to 5% of UMG, had previously stated that the company's share price "has languished due to a combination of issues that are unrelated to the performance of its music business." He had been calling for a U.S. listing since 2024.
The power of the Bolloré stake
The Bolloré Group holds an 18.4% stake in UMG directly, while Vivendi SE, in which the Bolloré family has a significant interest, owns another 13.4%. This gives the Bolloré family effective control of just under 32% of the music company. For any deal to proceed, a two-thirds majority of shareholders is required, making the transaction impossible without the Bolloré family's approval. Other major shareholders include China's Tencent Holdings with an 11.4% stake and Singapore's sovereign wealth fund GIC with nearly 5%.
- Pershing Square becomes a UMG shareholder following its spin-off from Vivendi and Amsterdam listing.
- Ackman begins calling for UMG to move its listing to the United States after attacks on Israeli soccer fans in Amsterdam.
- Bill Ackman steps down from UMG's board of directors.
- Cyrille Bolloré resigns as chairman of UMG's board to focus on the Bolloré Group.
- Ackman submits a non-binding $64 billion bid to UMG's board, offering 30.40 euros per share.
- Cyrille Bolloré publicly urges UMG management to reject the offer, calling it undervalued.
Market reaction and next steps
Following Bolloré's comments on May 27, UMG's stock dipped by 2.6% to 2.65% in Amsterdam trading. UMG had previously stated that its board of directors has "complete confidence in UMG's strategy and the leadership of Sir Lucian Grainge and the Company's management team," and that it would need time to evaluate the offer. The company has not yet issued a formal response to the proposal. UMG remains one of the three major global record labels, alongside Warner Music Group and Sony Music Entertainment, controlling over 30% of the worldwide recorded music market.
All the investors I have seen do not believe in this proposal.
Cyrille Bolloré resigned from his position as chairman of UMG's board in July 2025 to focus on the Bolloré Group, which has faced scrutiny from French securities regulators. Ackman himself served on UMG's board until May 2025.
