Universal Music Group plans to review Pershing Square takeover bid

UMG released a less enthusiastic response yesterday. “The Board of Directors, together with its advisors, will review the proposal in accordance with its fiduciary duties and analyze its implications for shareholders, employees, artists, songwriters and other stakeholders,” the statement read. The group may be wary of accepting the offer because of Pershing’s advocacy for integrating AI into the music business: “UMG can better use AI to make their business more efficient and their catalog even more valuable,” Pershing partner Feroz Qayyum told Billboard on Tuesday.

On the other hand, investors might look at Ackman’s bid as a lifeboat for UMG. The company’s share price has lagged in recent years, creating an opening for Ackman to suggest changes and present himself as a solution. Hedge funds and asset managers have been acquiring music catalogues at an increasing clip in recent years, with funds like Blackstone and KKR targeting rights from artists like Justin Bieber and Neil Young.