Universal Music repurchases $500m of own shares

This article appeared as part of the Daily Sensemaker newsletter – one story a day to make sense of the world. To receive it in your inbox, featuring content exclusive to the newsletter, sign up for free here.

Universal Music has announced its first buyback campaign since going public as it prepares to repurchase $500m of its own shares. The company said this was due to a “dislocation” between its market valuation and what it sees as its true worth. Shares in the music firm have declined by nearly 30% since the start of the year, forcing the company to postpone a US listing this month. Although UMG dominates the music industry, representing nine of the top ten recording artists in the world, it has consistently underperformed since its IPO. This is thought to be down to concerns about AI disruption and dependence on streaming platforms, which are a key plank in its revenue but growing at a slower rate than physical formats such as vinyl.