Billionaire Bill Ackman Resigns from Universal Music Board as Focus Shifts to New Roles
Billionaire investor Bill Ackman has officially stepped down from the Universal Music Group (UMG) board following the company’s annual general meeting. Ackman, who became one of the largest shareholders in UMG after acquiring a 10.25% stake during its spinoff from Vivendi in 2021, has decided to redirect his focus towards expanding his responsibilities at Pershing Square Capital Management and stepping into a new leadership role at Howard Hughes Holdings.
In a statement, Ackman expressed his satisfaction with UMG’s growth and transition from a private entity to a public company: “Over the last three years, I have greatly enjoyed being a director of UMG as it has transitioned from a private company into a flourishing public enterprise. The company is extremely well positioned for future growth and profitability under the superb leadership of Sir Lucian Grainge and the entire UMG team.”
Ackman’s decision to leave UMG’s board is tied to his increasing commitments with Howard Hughes Holdings, a publicly traded real estate development company, where he has assumed the position of Executive Chairman. Additionally, he will continue overseeing his investment portfolio at Pershing Square, marking a shift in his professional focus.
Universal Music has become a prominent player in the global music industry, representing top artists such as Taylor Swift, Drake, Billie Eilish, and up-and-coming stars like Rema and Ayra Starr from Nigeria’s Afrobeats scene. Despite this, the company’s share price has stagnated since its public debut in 2021, which has sparked continued investor interest. However, Ackman believes that UMG remains undervalued. He had previously shared his view that the company’s Euronext Amsterdam listing and its exclusion from major U.S. stock indexes like the S&P 500 have hindered its growth potential.
Ackman has openly stated that UMG trades at a significant discount due to its lack of a primary U.S. listing. This, according to him, has kept the company from realizing its full market potential. His comments coincided with reports that UMG might relocate its primary stock exchange listing to the U.S. in order to boost its visibility and attract more institutional capital.
Ackman’s exit from the UMG board marks the end of a notable chapter in his involvement with the company. Pershing Square had long seen Universal Music as a capital-light business poised to capitalize on the global rise in music consumption. Ackman had pointed out in his 2021 investor report that music provides the “lowest-cost, highest-value” form of entertainment, with vast opportunities for pricing growth and international expansion.
As Ackman moves on to focus on other ventures, UMG remains a key player in the music industry, continuing its expansive reach through its vast artist roster and dominance in global streaming markets.
