Ackman Makes $64B Play for Music Giant Universal – and Shakes Up the Industry

Reuters, BBC, Bloomberg, the Wall Street Journal, ABC News contributed to this report.

Pershing Square Capital Management is making a bold grab for Universal Music Group, pitching a roughly $64 billion merger that could shift the center of gravity of the music business to the US.

The offer, led by billionaire investor Bill Ackman, would combine Universal with a Pershing Square-backed vehicle and relist the new entity on an American exchange. It’s a big swing – and one that’s already turning heads across both Wall Street and the music world.

Universal isn’t just another label. It’s the home of global heavyweights like Taylor Swift, Sabrina Carpenter, and Kendrick Lamar. The company also controls iconic assets like Abbey Road Studios and major labels including EMI and Island Records.

Ackman, who already owns a stake, is betting the market is undervaluing that empire. He praised Universal’s management for building a powerhouse roster and navigating new tech like AI, but argued the stock has been stuck – dragged down by issues outside the core business.

Part of that overhang: uncertainty around a large stake held by the Bolloré Group and delays in moving the company’s listing from Amsterdam to New York, something Ackman has pushed for years.

Investors reacted fast. Universal shares initially jumped close to 30% before cooling off, still ending the day solidly higher.

Still, not everyone is sold on the easy-money narrative. As Dan Coatsworth put it, the music business looks like a cash machine on paper – but reality is messier. Streaming growth hasn’t quite lived up to early hype, and companies like Universal remain heavily reliant on platforms such as Spotify and Apple Music for royalties.

And those relationships can get tense. Just last year, Universal clashed with TikTok over payments and concerns about AI-generated content mimicking real artists.

That AI angle is becoming harder to ignore. Deepfake songs are flooding platforms, raising new questions about ownership, compensation, and how labels protect their talent.

Ackman sees opportunity in that chaos. He argues Universal is well positioned to benefit from AI while defending its intellectual property – a tricky balance that could define the next phase of the industry.

The structure of the deal adds another layer. Shareholders would get a mix of cash and stock in the new company, which is expected to be based in the US and potentially close by year-end – if it gets the green light.

Behind the scenes, this is also about timing. The music industry has clawed its way back from the piracy era thanks to streaming, but growth is slowing, competition is fierce, and marketing costs are relentless. Labels are spending heavily just to keep artists visible in an overcrowded market.

Ackman’s pitch boils down to this: fix the structural issues, move the listing, and let the business shine.

Whether Universal bites is another question. For now, the ball’s in their court – and the rest of the industry is watching closely.