Universal Music Group N.V. (EURONEXT: UMG) announced that its board of directors unanimously rejected an unsolicited proposal from Pershing Square Capital Management, L.P. received on April 7, 2026.

The board determined the proposal was not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders. After review with outside financial and legal advisors, the board concluded the proposal "fundamentally and materially undervalues UMG and will not deliver superior value creation."

The music company said it recently initiated and expanded its buyback program, announced plans to monetize half of its Spotify equity stake, and committed to enhanced financial disclosure. These initiatives had been under consideration for several months and will remain under continuous review.

"UMG has built an unrivalled position in the music industry through clear vision and strong execution," said Sherry Lansing, Chairman of the Board. "The Board has full confidence in Sir Lucian and his team's ability to deliver sustainable growth and continued value creation for all stakeholders."

Since becoming a listed company in 2021, UMG has grown revenue by 60% and adjusted EBITDA by nearly 70%. In 2025, UMG achieved a 33% share in recorded music, its highest share in 12 years, and a 24% share in music publishing, the highest share since Music & Copyright started tracking market share in 2010.

Citi is serving as financial advisor to the UMG board, while Paul, Weiss, Rifkind, Wharton & Garrison LLP and De Brauw Blackstone Westbroek N.V. are acting as legal advisors.