Universal Music Group says a multibillion-dollar takeover offer fundamentally undervalues the company behind Taylor Swift, Kendrick Lamar and more.
LONDON: Universal Music Group (UMG) – the entertainment giant behind Taylor Swift, Sabrina Carpenter and Kendrick Lamar – has rejected a multibillion-dollar takeover offer because it “fundamentally and materially undervalues” the company, reported PA Media/dpa.
UMG, which also represents Ariana Grande, Billie Eilish and The Weeknd, declined the offer – reportedly estimated at about US$65 billion – from billionaire Bill Ackman’s company Pershing Square on Friday.
The proposal was first made on April 7 by the investment company which already owns a stake in Universal.
The music company said the offer was not in the “best interests” of its shareholders, artists and songwriters.
Sherry Lansing, chairwoman of the UMG board, said: “UMG has built an unrivalled position in the music industry through clear vision and strong execution.
“The board has full confidence in (chairman and chief executive) Sir Lucian (Grainge) and his team’s ability to deliver sustainable growth and continued value creation for all stakeholders.”
The Jonas Brothers, John Legend and Noah Kahan are also among the major artists UMG represents, and the company is also home to music labels and brands such as EMI, Republic Records and Capitol Music Group.
Grainge said: “We remain committed to leading the industry by attracting the world’s top talent, deepening fan engagement globally and driving innovation.
“Central to that mission is fostering an environment that champions human creativity, protects artists, songwriters and entrepreneurs, and expands opportunities for growth and success.
“As we execute our strategy and deliver maximum long-term value, we look forward to providing shareholders with greater insight into the drivers of our performance and future direction of our business.”
