March 5 – Universal Music Group, the world’s largest music label, announced Thursday the suspension of its plans for an initial public offering in the United States, citing market uncertainty.
UMG said market conditions had caused its valuation to fall to a level it considers below fair value. The company said it would provide an update if the situation changes.
The decision reverses an agreement made with billionaire Bill Ackman and his Pershing Square fund, which had exercised its right to request a public offering in the United States and argued that a listing in New York would boost the price and liquidity of UMG shares.
UMG reported 2025 annual revenue of €12.5 billion ($14.5 billion), up 8.7% year-on-year at constant exchange rates.
The group’s artists topped the global charts in 2025 for the third year in a row, occupying 9 of the top 10 spots on the IFPI Global Artist Chart, led by Taylor Swift, KPop group Stray Kids and Drake, while KPop Demon Hunters’ soundtrack was among the best sellers of the year.
NEW STREAMING AGREEMENTS
UMG announced that it had entered into new “Streaming 2.0” agreements with Spotify and YouTube (a subsidiary of Alphabet) in 2025, continuing its strategy to increase its revenues from “superfans” through the sale of derivative products and premium subscriptions, rather than from casual listeners.
Premium subscription revenue grew 5.6% to €4.88 billion, outpacing overall streaming growth of 1.5%.
UMG’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 5.6% to €2.81 billion in 2025.
Net profit attributable to shareholders fell 26.5% to 1.53 billion euros. The company explains this decline by the revaluation of its stakes in companies such as Spotify and Tencent Music. Excluding these items, adjusted net profit increased by 7.0% to 1.91 billion euros.
(1 $ = 0,8640 euros)
