Weeks after Bill Ackerman's Pershing Square offered nearly $65 Billion to acquire Universal Music Group (UMG), UMG has announced that they will be selling half of their Spotify investments.
Analysing the music moguls' first quarter performance in terms of revenue, they have displayed steady growth turning over $3.3 billion, compared to 2025.
While UMG seems to be performing relatively well in terms of their profits, they feel as though their share price does not accurately frame the true scale at which their company has been growing. Through selling their Spotify stocks, they can fund their buyback initiative in the hopes that acquiring their own outstanding shares helps to boost the value of the remaining shares, boosting their stock prices.
Lucian Grainge, CEO of UMG, shares, “We delivered a solid quarter of growth in our core businesses, complemented by our strategic development and investment in fast-growing areas of the industry. We continue to build the most successful music company in history by attracting the world’s top talent, engaging fans globally, and delivering long-term value for stakeholders. Central to that mission is fostering an environment that protects artists and songwriters, champions human creativity, and embraces innovation at a pivotal moment for our industry.”
On the other hand, Spotify has also seen steady growth in their value. Even with their stock dropping 12% they have seen a steady rise in revenue reaching $5.3 billion compared to 2025 with the number of app users expanding to reach 761 million. UMG said it would use the move to help fund its share buyback programme, which it plans to raise from €500 million to €1 billion.
CFO of UMG Matt Ellis comments that, "Against the backdrop of a healthy industry, we are consistently driving sustained revenue growth through our multi-faceted strategy, while continuing to expand EBITDA and reinvest for the future. In addition, the important steps we are announcing today to increase our share buyback authorization and monetize a portion of our equity stake in Spotify will lead to enhanced shareholder value while maintaining the flexibility the Company requires to drive further success."
As UMG moves to rebalance its stocks and double down on shareholder returns, the decision to trim its Spotify stake signals a strategic pivot toward strengthening its own valuation. Backed by steady revenue growth and an expanding global market, the company appears focused on long-term positioning, prioritising flexibility, reinvestment, and sustained value creation. In an evolving industry landscape, these moves reflect UMG’s intent to not only keep pace with change, but actively shape the future of the music business.
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