Universal Music Group banked gross proceeds of EUR €403 million (USD $467 million) from selling part of its Spotify shareholding during the first half of 2026.
On MBW‘s calculations, UMG artists could be in line for approximately $131 million of that money.
The sale figure was disclosed by UMG CFO Matt Ellis on the company’s Q2 and H1 2026 earnings call on Thursday (July 30).
Ellis told analysts that UMG‘s higher net debt in the first half – a result of closing the Downtown acquisition and running its share buyback program – had been “partially offset by the sale of a portion of our Spotify shares.”
“We bought back EUR €485 million of shares as part of our first €500 million buyback program, which was completed during July, and €250 million from our second €500 million authorization to participate in the shares sold by Pershing Square in June,” said Ellis.
He added: “While the share buybacks will ultimately be primarily funded by the sale of a portion of our Spotify shares, that share sale is still in process.
“During the first half [of 2026[, we sold just under one-third of our planned 50% stake sale for gross proceeds of EUR €403 million.”
That EUR €403 million converts to USD $467 million at the average European Central Bank exchange rate for the period from May 1 to June 30, 2026.
UMG has committed to sharing the proceeds of any Spotify stock sale with its artists, but has not stated what specific proportion they will receive.
In April, Ellis said payouts to artists from any SPOT share transaction would be “consistent with our royalty policies.”
MBW has previously estimated a likely artist share of around 28% of gross proceeds, drawing on numbers contained in Bill Ackman‘s takeover proposal for the company.
In an April letter to UMG‘s board, Ackman‘s Pershing Square estimated that – based on stock prices at the time – liquidating UMG’s entire Spotify holding would generate a gross windfall of about USD $3.1 billion.
Of that, said Ackman, just over half – $1.7 billion – would reach UMG “after taxes and net of the artists’ share of Spotify proceeds”.
Ackman‘s numbers implied an artists’ portion of around 28% of the gross figure, as previously reported by MBW.
Applied to the $467 million booked by UMG from Spotify stock sales in H1 2026, that same 28% share would equate to an approximate $131 million payout for UMG’s artists.
UMG has not said when its artists will receive their share of the H1 proceeds, or whether payments will be staged as the 50% sale progresses.
Any such payout would be made on a non-recoupable basis, meaning UMG would disregard artists’ unrecouped balances when distributing the cash.
That policy dates back to 2018, and to Taylor Swift.
Announcing her new UMG contract on Instagram in November 2018, Swift wrote: “There was one condition which meant more to me than any other deal point.
“As part of my new contract with Universal Music Group, I asked that any sale of their Spotify shares result in a distribution of money to their artists, non-recoupable.”
Added Swift: “They have generously agreed to this, at what they believe will be much better terms than paid out previously by other major labels.”
Both of UMG‘s major music company rivals cashed in Spotify equity in 2018.
Sony Music sold half of its 5.7% holding that year for $768 million, having also agreed to set aside artists’ unrecouped balances when paying out.
Warner Music Group sold its entire Spotify stake in August 2018 for gross proceeds of $504 million.
WMG credited 25% of that sum to artist accounts, but did not disregard unrecouped balances.
According to UMG‘s 2025 annual report, the company held 6,487,000 Spotify shares as of December 31 – a 3.10% stake in the streaming platform, valued at EUR €3.214 billion.
UMG confirmed on April 29 that it would sell 50% of that holding.
With just under a third of that program now executed, MBW estimates that UMG retains around 5.4 million Spotify shares, or approximately 2.6% of the company.
Based on Spotify‘s market capitalization of USD $98.32 billion at the close on Tuesday (August 4), that residual stake is worth approximately USD $2.6 billion.
Roughly $1 billion of that stake remains earmarked for sale in order to complete UMG‘s planned 50% disposal.
As Matt Ellis confirmed on last week’s call, UMG‘s proceeds from the firm’s 50% Spotify share sale are headed toward Universal‘s own stock.
UMG announced a EUR €500 million buyback program on March 30, then doubled the authorization to €1 billion, with shareholders approving the additional tranche at the company’s annual general meeting on May 13.
€250 million of that second authorization went on buying 14,156,285 UMG shares directly from Pershing Square in June, as the fund exited the company following UMG‘s rejection of its $64 billion takeover bid.
UMG generated revenues of €3.294 billion ($3.83 billion) in Q2 2026, up 13.3% YoY at constant currency.Music Business Worldwide
In the first half of 2026, Universal Music Group (UMG) achieved gross proceeds of €403 million (approximately USD $467 million) from selling a portion of its shares in Spotify. This information was disclosed by UMG’s Chief Financial Officer (CFO), Matt Ellis, during the company’s Q2 and H1 earnings call on July 30, 2026. According to calculations by Music Business Worldwide (MBW), UMG’s artists might receive around $131 million from this sale.
Ellis attributed UMG’s increased net debt in the first half of 2026 to the acquisition of Downtown and the implementation of a share buyback program, which was somewhat mitigated by the revenue generated from selling Spotify shares. He noted that UMG repurchased €485 million of its own shares as part of a €500 million buyback program that was completed in July and an additional €250 million from a second €500 million authorization linked to shares sold by Pershing Square in June.
During the first half of 2026, UMG sold nearly one-third of its planned 50% stake in Spotify, generating gross proceeds of €403 million, which converts to USD $467 million based on the average exchange rate during that period. UMG has committed to sharing the proceeds of any Spotify stock sale with its artists, although the specific proportions have not been publicly disclosed. In previous communications, Ellis indicated that payments to artists from Spotify share transactions would be aligned with UMG’s royalty policies.
MBW had previously estimated that artists could expect to receive about 28% of gross proceeds from such sales, referencing figures from Bill Ackman’s takeover proposal for UMG. Ackman’s proposal estimated that liquidating UMG’s entire Spotify holding could produce around USD $3.1 billion, with UMG netting approximately $1.7 billion after taxes and accounting for artists’ shares. If the estimated 28% share applied to the $467 million generated in H1 2026, this would result in a payout of around $131 million to UMG’s artists.
UMG has not provided information on when these proceeds will be distributed to artists or whether the payments will be made in stages as the 50% sale continues. Any payouts would be made on a non-recoupable basis, meaning UMG would not consider artists’ unrecouped balances when distributing the funds. This policy was established in 2018, following Taylor Swift’s advocacy for a fairer distribution of funds to artists from Spotify share sales.
In her announcement regarding her new contract with UMG in November 2018, Swift emphasized the importance of ensuring that any sale of Spotify shares would lead to non-recoupable distributions to artists. UMG agreed to this condition, which they believed offered better terms than those provided by other major labels.
In 2018, UMG’s major competitors also capitalized on their Spotify equity. Sony Music sold half of its 5.7% stake for $768 million, while Warner Music Group (WMG) sold its entire Spotify stake in August 2018 for $504 million, crediting 25% of that sum to artist accounts but not disregarding unrecouped balances.
As of December 31, 2025, UMG reported holding 6,487,000 Spotify shares, equivalent to a 3.10% stake in the streaming platform, valued at approximately €3.214 billion. UMG confirmed plans to sell 50% of this holding, and with nearly one-third of that sale executed, UMG retains around 5.4 million Spotify shares, representing approximately 2.6% of the company. Based on Spotify’s market capitalization of USD $98.32 billion, this remaining stake is valued at roughly USD $2.6 billion, with an estimated $1 billion still earmarked for sale to complete UMG’s planned 50% disposal.
The proceeds from UMG’s Spotify share sales are intended to fund the company’s stock buyback initiatives. UMG initiated a €500 million buyback program on March 30, ultimately increasing the authorization to €1 billion, which was approved by shareholders at the annual general meeting on May 13. Part of this second authorization, totaling €250 million, was used to buy 14,156,285 UMG shares directly from Pershing Square, which exited the company following UMG’s rejection of its $64 billion takeover bid.
In the second quarter of 2026, UMG generated revenues of €3.294 billion (approximately $3.83 billion), marking a 13.3% increase year-over-year at constant currency. Overall, UMG’s strategic movements in the market, including the sale of Spotify shares and the share buyback program, indicate a focused approach to optimizing its financial position while ensuring that artists benefit from its business dealings.
