Universal Music to Sell Half of Spotify Stake, Boosts Buybacks

Universal Music Group NV said it will sell half of its stake in Spotify Technology SA and increase its share buyback program, addressing concerns about the company’s undervalued stock raised by billionaire investor Bill Ackman in his recent offer for the world’s largest record label.

As part of his complex proposal, which values Universal at about $65 billion, Ackman said he would sell the company’s entire stake in Spotify to raise €1.5 billion ($1.75 billion) after paying taxes and compensating artists. Universal said Wednesday it has increased its share buyback authorization to €1 billion. Universal plans to start another €500 million share buyback program once it completes the buyback for the same amount announced in March.