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 $64.3 billion (£48 billion).
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, Amazon, and Restaurant Brands International, which includes Burger King.
In a letter to UMG's board of directors, Ackman praised the management for building a world-class artist roster and strong business performance. However, he criticized the stock price for having 'languished' due to unrelated issues.
He attributed the stagnant stock performance to uncertainty surrounding Bolloré Group's 18% stake and the postponement of its US listing.
If the deal succeeds, UMG shareholders would receive €9.4 billion in cash (or €5.05 per share) along with shares in the newly formed entity, set to be listed on the New York Stock Exchange.
UMG shares increased by about 11% in early trading following the announcement. The company is yet to comment on this development.
