Pershing Square has proposed acquiring Universal Music Group through its acquisition vehicle in a deal valuing the music giant at €9.4 billion ($10.8 billion). The offer represents a 78% premium to Universal's recent closing price and would shift the company's primary listing from Amsterdam to the New York Stock Exchange. The transaction includes governance changes such as appointing Michael Ovitz as chairman alongside Pershing Square representatives.

This merger proposal comes after Universal Music has lost approximately 26% of its market value over the past year, despite strong underlying business performance. Pershing Square CEO Bill Ackman argues that the company's stock price has been held back by structural and communication issues rather than fundamental business challenges. The deal would cancel roughly 17% of Universal Music's shares and create a newly listed entity combining both companies.

The proposal has not yet secured support from major shareholders Vivendi and Bolloré, which together hold significant stakes in Universal Music. Pershing Square maintains that the transaction would address multiple factors constraining Universal's valuation while maintaining the company's strong market position as the world's largest music label.