Bill Ackman is stepping down from the board of Universal Music Group (UMG), signalling a strategic shift at Pershing Square Holdings, which has reduced its once-dominant stake in the global music label behind artists including Taylor Swift and Lady Gaga, according to a report by the Wall Street Journal.
Ackman’s resignation, announced just ahead of UMG’s annual general meeting, reflects what his firm described as “increasing demands on his time,” including his new role as executive chairman at real estate developer Howard Hughes Holdings. However, the move also follows Pershing Square’s decision to trim its UMG holding – from 27% to around 17% of the portfolio – and raises questions about the hedge fund’s long-term ambitions in the music and entertainment sector.
While UMG remains Pershing Square’s largest single holding, Ackman has been gradually dialling back his hands-on involvement. In March, the fund disclosed it had reduced its stake to just over 4.7%, following an accelerated book-build transaction. The shift came amid efforts to push UMG toward a US listing, which Ackman believes would offer broader investor access and valuation upside.
“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,” Ackman said. “The company is extremely well positioned for future growth.”
Universal Music shares fell 3% in Amsterdam after Ackman’s resignation announcement. However, the stock is up more than 7% since the year began.
