Bill Ackman is no longer on the board of Universal Music Group.
The surprise news was confirmed this morning (May 14) by UMG via an investor announcement.
It reads: “Universal Music Group N.V. (EURONEXT: UMG) announced that Non-Executive Director Bill Ackman has notified the company of his intention to resign from its Board of Directors effective today due to new executive and board obligations arising from his recent investments. The Board is very grateful for Mr. Ackman´s contributions to the Company.”
Ackman, who is the founder and CEO of Pershing Square Capital Management, has been a significant investor in UMG since 2021, when Pershing Square-led funds/affiliates acquired roughly 10% of UMG.
In March this year, Ackman’s Pershing Square raised USD $1.4 billion by selling a 2.7% stake in Universal Music Group.
Separately, in January, Pershing Square committed to selling at least USD $500 million of UMG shares, if it meant that Universal would list on a stock exchange in the United States. The firm currently trades exclusively on the Amsterdam Euronext.
Ackman has continued to press for a US-based listing for UMG, with a letter in Pershing Square’s latest annual report – issued in March – noting: “We expect [a US] listing to be a positive catalyst as it will provide: (1) increased demand for UMG shares from institutional investors who by mandate cannot purchase non-US listed companies as well as from US retail investors who have difficulty purchasing non-US listed shares, (2) improved analyst coverage, and (3) the potential for inclusion in major US indices.”
Throughout his time on UMG’s board, Ackman has expressed confidence in the music company’s long-term growth trajectory.
In that March Pershing Square letter to investors, he wrote: “We believe the next era of growth for [UMG] will be driven by continued penetration of streaming, additional and recurring price increases, and new product tiers for superfans… We believe that UMG’s continued strong market positioning, long runway for sustained earnings growth, and superb business qualities bode well for the company’s future prospects.”
News of Ackman’s exit from Universal’s board follows UMG’s Q1 2025 financial results, which showed revenue growth of 9.5% YoY and adjusted EBITDA growth of 10% YoY at constant currency.
Ackman’s departure comes during a transformative period for the music rights industry.
UMG has been at the forefront of promoting an “artist-centric” streaming royalty model, which the company’s CEO/Chairman, Sir Lucian Grainge, has described as part of “Streaming 2.0”.
That strategy is at the heart of forecasts from Universal, presented last year, that target average annual subscription streaming revenue growth of 8-10% through 2028.
UMG expects this growth to be driven by both increased streaming subscriber numbers and higher average revenue per user (ARPU).
Earlier this week, UMG confirmed that it had hired a new Chief Financial Officer.
Matt Ellis will join the company as CFO in June, based in Santa Monica.
Most recently, Ellis served as Executive Vice President and CFO at Verizon Communications, where he led all finance activities.Music Business Worldwide
