Universal Music Group To Sell Spotify Stake, Expand €1 Billion Buyback Plan

Universal Music Group has announced plans to sell half of its stake in Spotify while doubling its share buyback programme to €1 billion, signalling a more assertive capital strategy amid rising investor pressure.

The company will launch an additional €500 million buyback after completing the programme announced in March, taking total authorisation to €1 billion. Proceeds from the partial Spotify stake sale will fund the buyback, with a portion also set to be distributed to artists in line with its existing commitments.

The move comes as scrutiny intensifies from investors, including Bill Ackman, whose firm Pershing Square Capital Management holds over 4.5% in UMG. Ackman had recently proposed a broader restructuring, including a full divestment of UMG’s Spotify stake, a potential US listing, and changes to its financial reporting, arguing that the company remains undervalued.

UMG’s board, however, has chosen a more measured approach, opting for a partial stake sale while retaining strategic flexibility. The decision also aligns with the so-called “Taylor Swift clause,” linked to Taylor Swift’s 2018 agreement with the label, which ensures that proceeds from Spotify stake sales are shared with artists on a non-recoupable basis.

With this move, UMG is balancing shareholder returns with artist participation, while reinforcing its long-term positioning in the global streaming economy.