Universal Music Group buys back 14.1 million shares after Pershing Square exits

Universal Music Group buyback closes a five-year chapter

Universal Music Group announced a significant share repurchase on June 4, buying back 14.1 million of its own shares as part of the fallout from Bill Ackman's Pershing Square offloading its entire 80-million share stake in the company. According to Billboard, UMG acquired the shares at 17.66 euros ($20.48) per share, for a total consideration of 250 million euros ($290.9 million). For anyone tracking the UMG story on vibrako, this is a notable closing beat.

Why Pershing Square is out

The sell-off follows UMG's board rejecting a merger proposal submitted by Ackman on April 7. That non-binding bid valued UMG at 55.55 billion euros ($64 billion) and would have moved the company's primary stock listing from Euronext Amsterdam to a U.S.-based exchange, something Ackman had been pushing for since 2024.

The board declined, stating that Pershing's offer "fundamentally and materially undervalues UMG." A key voice in that rejection came from Bolloré Group CEO Cyrille Bolloré, who told shareholders on May 27 that "we think the price is not there at all." As of December 31, 2025, Bolloré Group holds 18.4% of UMG shares, representing nearly 40% of shareholder voting rights, making their opposition effectively decisive.

The numbers behind the buyback

UMG's share price stood at 18.36 euros ($21.32) on Thursday morning New York time, up from a trading-day low of 17.99 euros. Still, the stock has fallen 6.5% over the five trading days since the board rejected Ackman's bid.

The 250 million euro repurchase does not come out of UMG's original 500 million euro buyback program. Instead, it draws from an additional 500 million euros in repurchases authorized in May. As of May 29, UMG had already repurchased approximately 147 million euros worth of shares under the initial program.

End of a relationship

Ackman spent three years on UMG's board and once described his feelings about the company as "love at first sight." The buyback effectively closes a five-year relationship between UMG and Pershing Square. Whether this departure shifts the broader music industry landscape in meaningful ways remains to be seen, but UMG appears focused on stabilizing its share price rather than entertaining further consolidation moves for now.