Universal Music Group: Strategic Initiatives Should Drive Growth This Year

Pershing Square Holdings996 FollowersFollow5ShareSavePlay(7min)CommentsSummaryUniversal Music Group is a high-quality, capital-light business that can be best thought of as a rapidly growing royalty on greater global consumption and monetization of music.The company now trades at only 18 times our estimate of earnings per share, the lowest valuation since UMG became a publicly traded company.UMG signed a number of “Streaming 2.0” deals with major digital service providers which incorporate wholesale price increases that will lead to higher subscription revenue growth.We exercised our registration right to catalyze the U.S. listing because we believe it will increase demand from U.S. investors and enable UMG to be included in major indices.We remain convinced that human artists will continue to represent the vast majority of commercially relevant music as AI cannot replicate the personal fan connection. JHVEPhoto/iStock Editorial via Getty Images The following segment was excerpted from the Pershing Square Holdings (PSHZF) H2 2025 Letter To Shareholders.

Universal Music Group (UNVGY) is the world’s leading music entertainment company and a high-quality, capital-light business that canThis article was written byPershing Square Holdings996 FollowersFollowPershing Square Holdings, Ltd. is an investment holding company structured as a closed-ended fund principally engaged in the business of acquiring and holding significant (but generally not controlling) positions in a concentrated number of large capitalization companies. PSH’s objective is to maximize its long-term compound annual rate of growth in intrinsic value per share. Note: This account is not managed or monitored by Pershing Square Holdings, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Pershing Square Holdings' official channels.