Universal Music Group will sell half of its stake in Spotify, the company confirmed on Wednesday while announcing first-quarter earnings, which were flat year-on-year at about 2.9 billion euros ($3.3 billion) in the first quarter.
Spotify’s move comes weeks after Bill Ackman’s Pershing Square made an offer to buy the company, including a plan to sell UMG’s stake in Spotify. As of 2025, UMG owned approximately 6.5 million Spotify shares, according to UMG’s 2025 annual report, worth 3.16 percent of the company. As of this story’s publication, Spotify’s individual stock is worth about $443, making the sale worth about $1.4 billion.
Aside from Spotify’s move, UMG reported revenue of 2.9 billion euros ($3.3 billion) for its fiscal first quarter, the company said Wednesday, flat year-over-year despite an 8 percent increase when measured in constant currency.
Recorded music revenues rose by about half a percent to 1.642 billion euros (about $1.9 billion), while music publishing revenues grew at a similar rate year-on-year to 552 million euros (about $645 million).
Grainge said at the top of the earnings call on Wednesday that the company would not discuss Ackman’s proposal, saying UMG would provide an update later. During the call, Grainge reshaped some of the company’s AI strategies, including partnerships with Splice and Nvidia. He also promoted powerful releases from the likes of Olivia Deen, Olivia Rodrigo and Noah Kahan among others, while also praising UMG star Justin Bieber’s live-streaming rise following his much-anticipated headlining sets at Coachella earlier in April.
“We delivered a strong quarter of growth in our core businesses, complemented by our strategic development and investment in fast-growing areas of the industry,” Grainge said in a statement. “We continue to build the most successful music company in history by attracting the world’s best talent, engaging fans globally, and delivering long-term value to our stakeholders. Central to this mission is fostering an environment that protects artists and songwriters, supports human creativity, and embraces innovation at a pivotal moment for our industry.”
Matt Ellis, UMG’s chief financial officer, said in a statement Thursday that the sale of Spotify shares “will enhance shareholder value while maintaining the flexibility the company needs to achieve greater success.”
