Invoice Ackman is now not on the board of Common Music Group.
The shock information was confirmed this morning (Might 14) by UMG through an investor announcement.
It reads: “Common Music Group N.V. (EURONEXT: UMG) introduced that Non-Govt Director Invoice Ackman has notified the corporate of his intention to resign from its Board of Administrators efficient at present attributable to new govt and board obligations arising from his latest investments. The Board may be very grateful for Mr. Ackman´s contributions to the Firm.”
Ackman stated in an announcement: “Over the past three years, I’ve drastically loved being a director of UMG because it has transitioned from a personal firm right into a flourishing public enterprise. The corporate is extraordinarily properly positioned for future progress and profitability underneath the excellent management of Sir Lucian Grainge and the whole UMG crew.
“I’m grateful to my fellow administrators for his or her continued dedication to driving long-term worth for all shareholders.”
Ackman, who’s the founder and CEO of Pershing Sq. Capital Administration, has been a big investor in UMG since 2021, when Pershing Sq.-led funds/associates acquired roughly 10% of UMG.
In March this 12 months, Ackman’s Pershing Sq. raised USD $1.4 billion by promoting a 2.7% stake in Common Music Group.
Individually, in January, Pershing Sq. dedicated to promoting at the least USD $500 million of UMG shares, if it meant that Common would record on a inventory alternate in america. The agency at present trades completely on the Amsterdam Euronext.
Ackman has continued to press for a US-based itemizing for UMG, with a letter in Pershing Sq.’s newest annual report – issued in March – noting: “We count on [a US] itemizing to be a optimistic catalyst as it should present: (1) elevated demand for UMG shares from institutional traders who by mandate can not buy non-US listed corporations in addition to from US retail traders who’ve problem buying non-US listed shares, (2) improved analyst protection, and (3) the potential for inclusion in main US indices.”
All through his time on UMG’s board, Ackman has expressed confidence within the music firm’s long-term progress trajectory.
In that March Pershing Sq. letter to traders, he wrote: “We consider the following period of progress for [UMG] can be pushed by continued penetration of streaming, further and recurring worth will increase, and new product tiers for superfans… We consider that UMG’s continued robust market positioning, lengthy runway for sustained earnings progress, and excellent enterprise qualities bode properly for the corporate’s future prospects.”
Information of Ackman’s exit from Common’s board follows UMG’s Q1 2025 monetary outcomes, which confirmed income progress of 9.5% YoY and adjusted EBITDA progress of 10% YoY at fixed forex.
Ackman’s departure comes throughout a transformative interval for the music rights business.
UMG has been on the forefront of selling an “artist-centric” streaming royalty mannequin, which the corporate’s CEO/Chairman, Sir Lucian Grainge, has described as a part of “Streaming 2.0”.
That technique is on the coronary heart of forecasts from Common, introduced final 12 months, that focus on common annual subscription streaming income progress of 8-10% by means of 2028.
UMG expects this progress to be pushed by each elevated streaming subscriber numbers and better common income per person (ARPU).
Earlier this week, UMG confirmed that it had employed a brand new Chief Monetary Officer.
Matt Ellis will be a part of the corporate as CFO in June, primarily based in Santa Monica.
Most not too long ago, Ellis served as Govt Vice President and CFO at Verizon Communications, the place he led all finance actions.Music Enterprise Worldwide
