Universal Music Group, the entertainment giant behind acts such as Taylor Swift, Sabrina Carpenter, and Kendrick Lamar, has received a takeover offer estimated to be worth $64.3bn (£48bn).
US investment company Pershing Square is offering to buy Universal in a merger that would see the new company listed in America, its billionaire chief executive Bill Ackman said.
As well as representing a huge list of artists, the world's largest music company also runs Abbey Road studios and owns labels such as EMI and Island Records.
Pershing Square, which already owns a stake in Universal, also has holdings in Google, Meta, and Amazon, as well as Restaurant Brands International, which includes Burger King.
Universal is yet to respond to the offer.
Ackman said its management had done an excellent job nurturing and continuing to build a world-class artist roster and generating strong business performance.
He said Universal had reshaped the industry to put artists at its centre and had shown it could seize growth opportunities from artificial intelligence while protecting intellectual property.
However, he noted that the company's stock price had languished due to issues not related to its music business performance that could all be addressed with this transaction.
Dan Coatsworth, head of markets at AJ Bell, commented that while Universal might seem profitable, the situation is complex. He noted that although Universal houses nine of the top 10 global recording artists of 2025, growth in the music streaming market has been slower than expected.
In a letter to its board of directors, Ackman criticized Universal for its dramatic underperformance in major stock indexes, blaming various factors including uncertainties around an 18% stake in Universal owned by Bolloré Group and a decision to delay listing shares on the New York Stock Exchange.
Universal is currently listed in Amsterdam, but Ackman has long advocated for a flotation in the US.
Universal's share price jumped nearly 30% after the offer, reflecting investor optimism. This significant acquisition attempt highlights ongoing shifts in how music enterprises generate revenue as listener preferences evolve.
