Overview
- Universal Music Group, which disclosed the move Wednesday, will sell half of its roughly 6.5 million Spotify shares for about $1.4 billion.
- The company raised its share repurchase authorization to €1 billion, with a new €500 million program slated to start after the current €500 million tranche, subject to market conditions and shareholder approval.
- Artists will receive a non-recoupable payout from the sale under a 2018 commitment linked to Taylor Swift that directs windfalls to talent even if they owe money to the label.
- The step overlaps with parts of Bill Ackman’s €64 billion bid that called for monetizing the Spotify stake, though UMG says the offer remains under review and it is executing its own plan.
- First-quarter revenue held at €2.9 billion in reported terms as a weaker dollar offset underlying growth, and UMG said repurchased shares will both meet equity-plan obligations and reduce the share count.