Key Takeaways
- • Cyrille Bolloré, CEO of Bolloré Group and UMG's largest single shareholder, publicly urged Universal Music Group management to reject Bill Ackman's $64 billion acquisition proposal, calling the valuation inadequate.
- • Bolloré stated that Ackman's offer undervalues the company and characterized the proposal as using "our money, the company's money" rather than Ackman's own capital, signaling fundamental disagreement with the deal structure.
- • Under Ackman's proposal, UMG shareholders would receive €9.4 billion in cash plus 0.77 shares of new stock per UMG share, with the transaction including a relisting from Amsterdam to the New York Stock Exchange.
- • Bolloré's opposition represents a critical headwind for the acquisition, as his company holds the largest single shareholding position in UMG and has explicit influence over the company's strategic direction.
- • The rejection follows Ackman's April 2026 proposal, which positioned UMG's stock price underperformance as stemming from factors unrelated to music business fundamentals—issues Ackman argued could be resolved through the transaction.
Summary
Cyrille Bolloré, Chairman and CEO of the Bolloré Group and UMG's largest shareholder, publicly encouraged Universal Music Group to reject billionaire investor Bill Ackman's $64 billion acquisition proposal on May 28, 2026. Bolloré's statement marks the first substantive comment from the major shareholder since Ackman unveiled his offer in April, positioning him as a formidable obstacle to deal completion.
Speaking during Bolloré Group's markets day, Bolloré explicitly rejected the valuation, stating "the price is not there at all." He further criticized the deal structure, asserting that Ackman was not deploying his own capital but rather utilizing company assets: "He is not making an offer with his own money. It is our money, the company's money." Bolloré concluded his remarks with a direct call to action: "I encourage the management of Universal Music to reject it. As far as I am concerned, it is as if it has been rejected."
Ackman's proposal offered UMG shareholders €9.4 billion in cash combined with 0.77 shares of new equity per existing UMG share. The transaction structure also included relisting UMG's shares from the Amsterdam exchange to the New York Stock Exchange. When Ackman introduced the bid in April, he attributed UMG's depressed share price to factors unrelated to underlying music business performance, arguing his transaction could address valuation disconnects.
Following Ackman's initial announcement, UMG's board issued a holding statement expressing confidence in management and strategy but indicated the board would conduct a formal review of the proposal. With Bolloré—who stepped down from UMG's board last year—now publicly opposing the deal and wielding significant shareholder influence, the acquisition faces substantial headwinds. Pershing Square and Ackman representatives declined to comment in response to Bolloré's statements.
Speaking during Bolloré Group's markets day, Bolloré explicitly rejected the valuation, stating "the price is not there at all." He further criticized the deal structure, asserting that Ackman was not deploying his own capital but rather utilizing company assets: "He is not making an offer with his own money. It is our money, the company's money." Bolloré concluded his remarks with a direct call to action: "I encourage the management of Universal Music to reject it. As far as I am concerned, it is as if it has been rejected."
Ackman's proposal offered UMG shareholders €9.4 billion in cash combined with 0.77 shares of new equity per existing UMG share. The transaction structure also included relisting UMG's shares from the Amsterdam exchange to the New York Stock Exchange. When Ackman introduced the bid in April, he attributed UMG's depressed share price to factors unrelated to underlying music business performance, arguing his transaction could address valuation disconnects.
Following Ackman's initial announcement, UMG's board issued a holding statement expressing confidence in management and strategy but indicated the board would conduct a formal review of the proposal. With Bolloré—who stepped down from UMG's board last year—now publicly opposing the deal and wielding significant shareholder influence, the acquisition faces substantial headwinds. Pershing Square and Ackman representatives declined to comment in response to Bolloré's statements.
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