Universal Music Group announces €500 million share buyback program

Universal Music Group N.V. (EURONEXT: UMG) announced a €500 million share buyback program to repurchase the company's shares through an independent broker, according to a press release statement.

The program represents the company's first share buyback initiative. CFO Matt Ellis stated that the company sees "a meaningful dislocation in UMG's market valuation" and cited the company's strong balance sheet and cash generation as providing flexibility for the repurchases.

The buyback will operate under existing board authorization granted at the May 14, 2025 Annual General Meeting of Shareholders and future meeting authorizations. UMG plans to use repurchased shares to meet obligations under its 2022 Global Equity Plan or reduce share capital.

The program will comply with EU Market Abuse Regulation and Commission Delegated Regulation requirements, including safe harbor provisions. UMG stated it may suspend, modify or discontinue the program at any time.

Ellis noted that the company's capital allocation strategy prioritizes strategic reinvestment while maintaining dividend policy before considering additional capital returns. The company will provide regular updates on program progress through press releases and website updates.

UMG operates as a music-based entertainment company with businesses in recorded music, music publishing, merchandising and audiovisual content. The company went public following its transition from private ownership.

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