Universal Music Group said on Thursday it has repurchased a portion of the shares that Pershing Square was selling after Bill Ackman's attempted takeover of the music company failed. The repurchase covered slightly more than 14 million ordinary shares and was executed as part of Pershing's broader disposal of its UMG stake.
The buyback amounted to roughly €250 million, at a per-share price of €17.66. Pershing Square had been seeking to place around 80.6 million UMG shares in an overnight offering and was reported to expect at least $600 million in profits from the investment, according to published reports. Pershing Square declined to comment.
Ackman's planned acquisition - an unsolicited cash-and-stock proposal valued at about €55.75 billion, according to Reuters calculations - was rejected by UMG's board last month on the grounds that it materially undervalued the company. The Bolloré family, which is UMG's largest shareholder with an 18% stake, had urged the board to turn the offer down. UMG Chief Executive Cyrille Bolloré told the company's annual shareholders meeting that "the price was not there at all."
UMG's Amsterdam-listed shares fell nearly 7% by mid-morning trading on the day of the announcement, which compounded a roughly 20% decline in value since January. LSEG data showed Pershing had held a 4.7% stake in UMG prior to the disposal.
Ackman's involvement with UMG began in 2021 when he built a stake in the company. He joined the board the following year and initially expressed support for the business and its management. He resigned in 2025 after growing frustrated with UMG's share price performance, the influence of the Bolloré family, and the company's decision to pause plans for a U.S. listing.
Market context and mechanics
The transaction saw UMG step in to buy back a portion of the block of stock Pershing was offering. The repurchase reduced the immediate volume of shares coming to market as part of the overnight placing, while Pershing continued to unwind a stake it had held since Ackman's initial purchase. The per-share price on the block repurchased by UMG, €17.66, values that tranche at about €250 million - approximately $290.6 million using the exchange rate cited in the original report ($1 = 0.8601 euros).
The sequence of events closes a five-year chapter in which Ackman moved from board ally to an activist investor pursuing a full takeover, ultimately culminating in a proposal the board deemed inadequate. The share sale and subsequent buyback have resulted in immediate trading volatility for UMG stock.
Implications for stakeholders
- For UMG, the repurchase is a defensive move that reduces the number of shares available in the market from Pershing's disposal.
- For Pershing Square and its investors, the sale represents an exit from a 4.7% holding that had been expected to generate substantial gains on the original position.
- For markets and shareholders, the episode highlights tensions between activist investors and controlling shareholders over valuation and strategic direction.