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Universal Music Group rejects multi-billion dollar takeover bid
🇸🇰 Slovakia /Economy & Trade

Universal Music Group rejects multi-billion dollar takeover bid

From SME · () Slovak

Translated from Slovak, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Universal Music Group (UMG) rejected a multi-billion dollar takeover offer, stating it "significantly undervalues" the company.
  • The offer, reportedly around $65 billion from U.S. investment firm Pershing Square, was deemed not in the best interest of shareholders, artists, or songwriters.
  • UMG, representing major artists like Taylor Swift and Billie Eilish, emphasized its strong position in the music industry and commitment to growth, talent, and innovation.

Universal Music Group (UMG), a global giant in the entertainment industry representing artists such as Taylor Swift, Sabrina Carpenter, and Kendrick Lamar, has rejected a multi-billion dollar takeover bid. The company stated the offer "significantly undervalues" its worth.

significantly undervalues

— Universal Music GroupReason for rejecting the takeover offer.

The rejected proposal reportedly amounted to approximately $65 billion from the American investment firm Pershing Square. UMG, which also represents Ariana Grande, Billie Eilish, and The Weeknd, declared that the offer was not in the "best interest" of its shareholders, artists, and songwriters. The music conglomerate houses major labels including EMI, Republic Records, and Capitol Music Group, and represents numerous prominent artists.

UMG's board expressed full confidence in Chairman and CEO Lucian Grainge and his team's ability to ensure sustained growth and value creation for all shareholders. "UMG has built an unparalleled position in the music industry through clear vision and consistent execution," stated UMG Chairwoman Sherry Lansing.

UMG has built an unparalleled position in the music industry through clear vision and consistent execution. The board has full confidence in Chairman and CEO Lucian Grainge and in his team's ability to ensure sustainable growth and continuous value creation for all shareholders.

— Sherry LansingStatement from the UMG Chairwoman regarding the company's position and leadership.

Grainge further elaborated on the company's mission, stating, "We are committed to remaining the industry leader by attracting the biggest talents from around the world, deepening fan engagement globally, and fostering innovation. A key element of this mission is creating an environment that supports human creativity, protects artists, songwriters, and entrepreneurs, while expanding opportunities for growth and success."

We are committed to remaining the industry leader by attracting the biggest talents from around the world, deepening fan engagement globally, and fostering innovation. A key element of this mission is creating an environment that supports human creativity, protects artists, songwriters, and entrepreneurs, while expanding opportunities for growth and success.

— Lucian GraingeStatement from UMG's Chairman and CEO on the company's mission and future.

Universal Music Group stands as the world's largest music company, forming part of the "big three" music labels alongside Sony Music Entertainment and Warner Music Group.

not in the "best interest"

— Universal Music GroupReason for rejecting the takeover offer.
DistantNews Editorial

Originally published by SME in Slovak. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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