Universal Music Group has tabled a potential takeover bid from billionaire hedge fund manager Bill Ackman estimated to be worth $64.3billion (£48bn).
US investment company Pershing Square is offering to buy the entertainment giant in a move that would see the new company listed in America.
Universal, who represents global stars such as Taylor Swift, Sabrina Carpenter and Kendrick Lamar, confirmed it had received the offer and would assess its implications for shareholders, employees and artists.
Pershing Square, which already holds a stake in the company, has investments across major global firms including Google, Meta and Amazon.
Ackman praised Universal's management for building a "world-class artist roster and generating strong business performance," but said the company's share price had "languished" due to issues unrelated to the performance of its music business, which could all be "addressed with this transaction".
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