Universal Music Group has rejected a $64.3 billion (£48 billion) takeover offer from investment firm Pershing Square Capital Management, led by billionaire investor Bill Ackman.

The world’s largest music company said the proposal was not in the best interests of the business, its shareholders, artists, fans, and other stakeholders. Universal also argued that the offer significantly undervalued the company and failed to reflect its long-term growth potential.

Universal Music is home to some of the biggest names in the music industry, including Taylor Swift, Sabrina Carpenter, and Kendrick Lamar. The company also owns major record labels such as EMI and Island Records, while operating the iconic Abbey Road Studios.

Pershing Square, which already holds a stake in Universal Music, launched its takeover proposal in April. The deal would have resulted in Universal being restructured and listed as a new company in the United States. Currently, Universal’s shares are traded on the Euronext Amsterdam.

At the time of the bid, Ackman argued that Universal’s share price had underperformed despite the strength of its core music business. He suggested that several external factors were limiting investor confidence, including ownership structure issues and strategic decisions regarding stock market listings.

One concern highlighted by Ackman was the approximately 18% stake held by Bolloré Group, the family-controlled business of French billionaire Vincent Bolloré. He also pointed to the company’s decision to delay a planned listing on the New York Stock Exchange as a factor affecting market performance.

However, Bolloré Group publicly opposed the takeover proposal. Chief Executive Officer Cyrille Bolloré argued that Ackman’s offer did not accurately reflect Universal’s true value and future prospects.

Following Universal’s rejection of the proposal, Pershing Square declined to comment on the decision.

The move highlights growing confidence within Universal’s leadership regarding the company’s long-term outlook. With streaming revenues, music licensing, artist development, and global music consumption continuing to expand, executives appear convinced that the company’s value exceeds the level proposed by Ackman’s investment firm.

The rejection also sets the stage for potential future discussions between investors and management over Universal’s strategic direction, ownership structure, and market valuation. For now, however, Universal Music has made it clear that it believes its future is worth considerably more than the $64.3 billion offer currently on the table.