Universal Music Group rejects Bill Ackman's takeover bid for 'undervaluing' the company
The company, which represents Bad Bunny or Taylor Swift, among other artists, rejected the $65 billion offered by the CEO of Pershing Square Capital Management.
Bill Ackman. File image
Universal Music Group (UMG) rejected the buyout offer submitted by Bill Ackman, through the hedge fund he runs, Pershing Square Capital Management, deeming it "undervalued" the company.
The billionaire was offering $65 billion for UMG, or $35.13 per share, according to detailed Forbes. In addition, the company would begin trading on the New York Stock Exchange instead of the Amsterdam Stock Exchange (Netherlands), as it does now.
In a statement, UMG's board noted that Ackman's offer "fundamentally and materially undervalues" the entertainment company, adding that they "continuously assess the company's business and financial strategy."
For his part, Bill Ackman said that the company is going through some "problems" that "are not related to the performance of its music business," in statements picked up by AFP.
UMG is one of the most important companies in its sector, representing artists such as Taylor Swift, Bad Bunny, Billie Eilish, Sabrina Carpenter, Elton John, Bob Dylan, Kendrick Lamar, Justin Bieber, Rosalia, Coldplay or The Weeknd, among others.
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