Universal Music to monetize half of equity stake in Spotify

Universal Music Group (UMGNF) said its board authorized the monetization of half of the company’s equity stake in Spotify (SPOT). UMG said, “Against the backdrop of a healthy industry, we are consistently driving sustained revenue growth through our multi-faceted strategy, while continuing to expand EBITDA and reinvest for the future. In addition, the important steps we are announcing today to increase our share buyback authorization and monetize a portion of our equity stake in Spotify will lead to enhanced shareholder value while maintaining the flexibility the Company requires to drive further success.” UMG added that its board considers the share price to be undervalued relative to its business performance and prospects, and has accordingly increased the size of its share buyback authorization to EUR 1B.