Yesterday, while reporting its first-quarter earnings, Universal Music Group (UMG) confirmed plans to sell half of its stake in Spotify. According to The Hollywood Reporter, the deal is worth roughly $1.4 billion. Each Spotify share is worth about $443. The decision comes just a few weeks after Bill Ackman’s Pershing Square submitted a $64 billion offer to buy the company.
UMG owned nearly 6.5 million shares in Spotify as of 2025, per the company's 2025 yearly report. This is worth 3.16 percent of the company.
"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, UMG's Chairman and CEO, Lucian Grainge, stated. "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," he also added.
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Taylor Swift's Spotify Clause
CFO of UMG, Matt Ellis, explained: "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," Ellis also said.
All artists signed to UMG will benefit from the sale, all thanks to Taylor Swift. As part of a record deal she signed in 2018, she asked that any sale of the label's Spotify shares result in a distribution of money to their artists, non-recoupable. Artists that will benefit as a result include Kendrick Lamar, SZA, Sabrina Carpenter, and many more.
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