Bill Ackman's Pershing Square Capital has proposed a $45 billion takeover of Universal Music Group, offering to relocate the world's largest music company from Amsterdam to New York. The hedge fund already owns a stake in UMG and has submitted a merger plan with a blank-check company it controls.

Under the proposal, Universal shareholders would receive €5.05 in cash plus 0.77 shares in the new entity for each share owned. Ackman claims UMG's stock has underperformed due to issues unrelated to its core music business, all of which he says can be resolved through the transaction. The deal would create one of the largest media companies listed on U.S. exchanges.

Universal Music, home to artists like Taylor Swift and Kendrick Lamar, has been publicly traded since 2021 after Vivendi spun off its majority stake. The company's market value has fluctuated amid concerns about streaming growth and macroeconomic pressures. Ackman's bid represents a significant premium and could trigger a bidding war among other media conglomerates eyeing the valuable music catalog.