Overview
- Universal Music Group, which disclosed the plan Wednesday, will sell half of its Spotify holding and direct its share of the proceeds to stock repurchases.
- Buybacks will rise to €1 billion after a new €500 million program that follows an existing €500 million plan, with the fresh authorization subject to shareholder approval and market conditions.
- UMG said artists will receive a share of the Spotify-sale proceeds on a non‑recoupable basis under a 2018 commitment often called the Taylor Swift clause.
- The company reported first‑quarter revenue of €2.9 billion and adjusted EBITDA of €636 million, which were flat to down on a reported basis but higher in constant currency due to a weaker U.S. dollar.
- The move follows Bill Ackman’s roughly $64 billion proposal that urged monetizing the Spotify stake and a U.S. relisting, yet UMG’s board pursued its own capital plan as it reviews the offer.