Bolloré family rejects Pershing Square €55bn UMG bid

The Bolloré family publicly rejected Pershing Square’s proposed €55 billion takeover of Universal Music Group, saying the offer fell short on valuation, the structure of the deal and the amount of cash being offered.

At the Bolloré Group annual meeting, chief executive Cyrille Bolloré told shareholders he did not support the bid and indicated other investors likely shared reservations. The family owns about one-third of Amsterdam-listed UMG and holds a blocking stake that would be decisive in any takeover vote.

Pershing Square unveiled the proposal in April. The plan would be primarily stock-based, would move UMG’s primary listing from Amsterdam to New York and would include governance changes such as naming former Disney executive Michael Ovitz as chair and adding Pershing representatives to the board. Any transaction would need approval from shareholders controlling at least two-thirds of voting rights.

Pershing Square currently owns roughly 5% of UMG. China’s Tencent holds about an 11.4% stake and Singapore’s sovereign wealth fund GIC holds a significant position. Bolloré confirmed talks were held with both Bill Ackman’s firm and Tencent about the proposal and described the family’s UMG stake as a long-term strategic holding rather than an asset for sale.

UMG shares have fallen since the start of the year amid investor concern about how generative artificial intelligence could affect music catalogs, artist rights and royalty revenues. Universal has been expanding collaboration with streaming platform Spotify on AI-enabled remixing and cover-generation tools for participating artists.

Universal Music Group, which represents artists including Taylor Swift, Olivia Rodrigo and Kendrick Lamar, has not issued a formal response to the bid. Pershing Square did not immediately comment following the Bolloré family’s announcement.

With the Bolloré family opposed, Pershing Square faces a more difficult path to secure the two-thirds shareholder approval the proposal requires. The family’s position removes an element Pershing Square had identified as central to building support for the transaction.