Universal Music Group rejected a $65 billion buyout offer from billionaire investor Bill Ackman, with the company's largest shareholder opposing the deal on valuation grounds.

The offer was deemed insufficient by Universal's biggest stakeholder, who argued that the proposed price undervalued the world's largest music company. Universal Music Group controls a significant portion of the global recorded music market and represents major artists across multiple genres.

Ackman, who runs Pershing Square Capital Management, had proposed the acquisition as part of his investment strategy in media and entertainment companies. The hedge fund manager has previously made high-profile investments in various sectors.

Universal Music Group, which went public in 2021, has seen its valuation fluctuate with changes in the streaming music market and broader entertainment industry trends. The company's catalog includes recordings from some of the world's most prominent artists and generates revenue through streaming platforms, physical sales, and licensing agreements.

The rejection suggests Universal's leadership believes the company's current market position and future growth prospects justify a higher valuation than Ackman's offer reflected.