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A major new investor has entered the scene at Universal Music Group (UMG). UK-based activist firm Independent Franchise Partners (IFP) has acquired a 3.01% stake in the world’s largest music company, a holding worth more than $1.2 billion. The position, disclosed in a February 9, 2026 filing with the Dutch regulator AFM, makes IFP one of UMG’s largest shareholders and signals renewed institutional confidence in the long-term value of music rights.
A Broader Bet on Music
IFP’s move is not isolated. The firm also holds a 9.1% stake in Warner Music Group and positions in companies such as Vivendi and Rightmove, suggesting a broader strategic bet on premium intellectual property and dominant intangible assets. Meanwhile, UMG’s shareholder base has been shifting. Pershing Square, led by Bill Ackman, reduced its stake in 2025 and Ackman stepped down from UMG’s board in May.
Complicating matters further is the ongoing legal dispute in France involving Vivendi and the Bolloré Group, controlled by Vincent Bolloré and led operationally by Cyrille Bolloré. In late November 2025, France’s Cour de Cassation overturned a prior ruling regarding control of Vivendi, prolonging uncertainty. At the same time, UMG’s proposed U.S. listing — filed confidentially with the SEC in July 2025 — remains pending.
Strong Business, Weaker Stock
Despite the turbulence, UMG’s underlying performance remains solid. In Q3 2025, the company posted €3.02 billion in revenue, up 10.2% year-over-year, with adjusted EBITDA margins of 22%. Yet shares have fallen roughly 30% over the past year.
Pershing Square recently described UMG as “a high-quality, capital-light, rapidly growing royalty on greater music consumption,” arguing that its valuation reflects a “very substantial discount to its intrinsic value.” With streaming price increases, AI-driven efficiencies, and expanding global music consumption, many investors believe the long-term growth story remains intact.
IFP’s $1.2 billion stake suggests that sophisticated investors still see strong upside in the music rights sector. While legal overhangs and listing delays have weighed on the stock, UMG’s fundamentals continue to grow. For market watchers, the current volatility may represent not weakness — but opportunity.
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