Universal Music Group (UMG) has announced plans to sell half of its equity stake in Spotify, marking a significant strategic shift as the world’s largest music label looks to unlock value from its investments while doubling down on shareholder returns.
The move was disclosed alongside the company’s first-quarter 2026 earnings, where UMG also said it would expand its share buyback programme, funded in part by proceeds from the stake sale.
UMG’s stake in Spotify valued at billions of dollars is a legacy of earlier licensing deals between record labels and streaming platforms. By selling roughly half of this holding, the company is expected to generate over $1 billion in proceeds, which will be directed toward buybacks and capital returns.
The company has already increased its buyback authorisation to €1 billion, signalling confidence that its shares are undervalued and that repurchasing stock offers better long-term returns. Importantly, UMG reiterated that a portion of the proceeds will also be shared with artists, in line with its long-standing compensation policies.
The stake sale comes at a time when UMG’s core business music streaming is showing strong momentum. The company reported 8.1% revenue growth in constant currency terms for the quarter, driven largely by subscription and streaming gains.
Subscription revenues alone rose by over 12%, reflecting price hikes and continued global adoption of paid music services. However, overall reported revenue remained flat at around €2.9 billion, impacted by currency headwinds, particularly a weaker US dollar.
