Key facts
- Universal Music Group repurchased 14.16 million ordinary shares from Pershing Square funds.
- Pershing Square sold its entire stake in UMG, valued at over $1.5 billion.
- UMG's board had previously rejected a $64 billion takeover bid from Pershing Square.
- The share repurchase was part of UMG's existing €500 million buyback program.
- UMG's stock fell 4.9% in early trading.
Universal Music Group (UMG) announced it repurchased 14.16 million ordinary shares from various Pershing Square funds for €250 million ($290.6 million), at €17.66 apiece. This transaction marks the complete disposition of Pershing Square's stake in UMG, valued at over $1.5 billion, and is expected to result in an estimated $600 million profit for the fund. The exit follows UMG's board rejection of a $64 billion takeover bid from Pershing Square earlier this year, which was also opposed by Bolloré Group, UMG's largest shareholder with an 18% stake. UMG's stock fell nearly 4.9% in mid-morning trading, pushing its year-to-date loss to nearly 17.9%. Pershing Square, which held a 4.7% stake, had initially joined UMG's board in 2021 but resigned in 2025 due to frustration over share price performance and other factors. Despite the sell-off, analysts maintain a positive outlook with a 'Strong Buy' consensus and an average price target of $31.50.