Universal Music Group will sell half of its stake in Spotify for 2.7 billion euros

Universal Music Group (UMG) has announced the sale of half of its approximately 2.7 billion euro stake in Spotify, a decision made following weak financial results in the first quarter, affected by the weakening of the US dollar.

The funds obtained will be used to finance a stock buyback program, which will be doubled, as well as to be distributed to artists, according to the commitment made by Taylor Swift in 2018. This decision comes after the unsolicited offer of 64 billion dollars from investor Bill Ackman, who suggested the sale of the stake. The UMG board of directors decided to act independently, approving the sale on its own terms. Revenues in the first quarter stagnated at 2.9 billion euros, and adjusted operating profit fell by 3.8%. Among the artists with the highest sales were BTS, Taylor Swift, Olivia Dean, and Morgan Wallen.