Universal Music Group (UMG) is selling half of its Spotify stake for $1.4 billion, ahead of the resolution of Bill Ackman’s $64 billion takeover bid.
Lucian Grainge just made a major move to reshape the way Universal Music Group handles its largest streaming property.
The record label will sell half of its Spotify stake, which would mean a loss of about $1.4 billion on the company’s balance sheet.
This isn’t random timing either. The decision comes after Bill Ackman’s Pershing Square rejected a $64 billion takeover bid that specifically included a plan to liquidate its Spotify position.
UMG confirmed the move during its first-quarter earnings call on Wednesday, reporting revenue of $3.3 billion in the period.
The company owns nearly 6.5 million Spotify shares, accounting for about 3.16% of the streaming giant’s shares.
At the current valuation of around $443 per share, selling half of the shares would generate significant capital.
Recorded music revenue climbed to $1.9 billion, while publishing revenue was $645 million, indicating that the core business remains stable even as the company makes these portfolio changes.
Grange remained tense on the earnings call, declining to discuss Ackman’s proposal in detail and promising to provide an update later.
He highlighted UMG’s strategy around artificial intelligence, including new partnerships with Splice and Nvidia, laying the brand foundation for the next wave of music production technology.
He also celebrated the latest releases from artists like Olivia Rodrigo and Justin Bieber’s streaming boom following his appearance at the Coachella music festival in April.
According to The Hollywood Reporter , Chief Financial Officer Matt Ellis said the Spotify stock sale “will enhance shareholder value while maintaining the flexibility the company needs to drive further success.”
The move shows UMG’s confidence in its ability to generate returns without holding specific assets for the long term.
The timing is important because artists will receive $870 million from Spotify proceeds, a component Ackman described as part of an “artist-centric model” in his broader pitch for the acquisition.
UMG’s decision to move forward with the sale independently of any acquisition deal signals the brand’s willingness to reshape its product portfolio on its own terms.
Grange’s next step will be to clarify the status of Ackman’s proposals, which include plans for a U.S. stock market listing and significant operational changes across the organization.
