Bill Ackman Set to Earn $600 Million as Universal Music Investment Ends

Despite making a bid to purchase Universal Music Group for $65 billion, Bill Ackman will still make upwards of $600 million on his investment in the company. 

Ackman, who heads the hedge fund Pershing Square, is set to sell the fund's remaining stake in Universal, according to The Wall Street Journal. 

The Journal reports that Pershing Square holds 80.6 million Universal shares, which are worth about $1.5 billion. 

As for profits, the Journal estimates Pershing Square will get about $600 million in profit, including dividends, on an investment that lasted nearly five years. 

Ackman's Takeover Bid Was Recently Rejected

This news about selling the shares comes after Ackman offered up $65 billion for Universal. The Universal board of directors believed it was an undervalued offer for a company that has Taylor Swift, Kendrick Lamar, and Billie Eilish under its label. 

When the deal was made, the Bolloré Group, Universal's largest shareholder, urged the company to reject it. The Bolloré family holds an 18.5% stake in Universal and 40% of the voting rights. 

Also, when the deal was offered, Ackman praised Universal Chief Executive Lucian Grainge, saying that the company's stock price had issues, but not because of Grainge. 

If the deal were accepted, it would merge Universal with Pershing Square Sparc Holdings, and move that new entity to a US listing. Right now, Universal has operational headquarters in Santa Monica, California, and corporate headquarters in the Netherlands. As a result, it trades on Euronext Amsterdam. 

Pershing Square's History With Universal Music

Ackman's history with Universal dates back to 2021. Back then, he proposed a deal for his "special-purpose acquisition company" to purchase a 10% stake from the previous owner, Vivendi. After regulators pushed back, he backed off the deal. 

From there, Pershin got an average per-share price of €18.27.

In 2025, Pershing sold $1.4 billion of Universal stock for €26.55 a share.

As for this sale of shares, the Journal is reporting that, per a release from Bank of America, Pershing's remaining shares are "being offered at a 3% to 8% discount to Universal’s closing price Wednesday of around €19."

Finally, Ackman learned that Universal owned recordings his grandfather, Herman Ackman, made in 1926 for a song he wrote titled "Put Your Arms Where They Belong" for artist Nick Lucas.