Ackman's Pershing Square Fully Exits Universal Music, Selling Over $1.5 Billion in Shares
N.R. Finch
Pershing Square sold its entire remaining stake in Universal Music — roughly 80.6 million shares worth over $1.5 billion — exiting the world's largest music company after its takeover bid was rejected, sending the stock down as much as 7.6%.
What exactly was sold, and how much did Pershing make?
Pershing Square offloaded about 80.6 million shares of Universal Music, valued at over $1.5 billion, and expects at least $600 million in profit.
Ackman first invested in 2021, when Universal Music was still owned by French media group Vivendi and had not yet been spun off onto the Amsterdam Euronext. This means → even selling at a deep discount to his own bid price, the position was profitable over roughly four years.
After the sale, Pershing Square's stake in Universal Music drops to zero.
How much did Universal Music buy back itself?
Universal Music repurchased 14.16 million shares from several Pershing Square funds at €17.66 per share, totaling about €250 million.
The buyback price was an 8% discount to Wednesday's close, funded from Universal's existing €500 million repurchase programme. In plain terms = Universal took advantage of a departing major holder to buy back a sliver of its own equity at a bargain.
The repurchased shares — roughly 0.8% of Universal Music — will be used to meet obligations under the company's 2022 global equity incentive plan or to reduce registered capital.
Why is Pershing Square leaving now?
In April, Pershing Square offered to acquire Universal Music for €9.4 billion in cash plus stock, implying roughly €30.40 per share, with a plan to list the combined entity on the New York Stock Exchange.
Universal's board rejected the offer, calling it a bid that "fundamentally and significantly undervalues UMG." Its largest shareholder, France's Bolloré Group, also opposed the deal.
This means → with the takeover path closed, Ackman chose to cash out entirely. The exit price of €17.66 per share is more than 40% below the €30.40 implied in his April bid.
How is the market reading this?
Universal Music fell as much as 7.6% to €17.74 in early European trading on Thursday, extending its year-to-date decline to nearly 20%.
ING analysts David Vagman and Maxime Stranart wrote that Pershing's exit after the rejected bid was "not surprising" but still bad news for the stock.
They noted: "The departure of such a high-profile backer itself sends a negative signal." This reflects a concern beyond the immediate selling pressure — the market has lost an anchor buyer who was willing to pay a premium.
Content is for reference only, not financial advice.