Universal Music Group, the powerhouse behind artists like Taylor Swift, Billie Eilish, and Drake, has taken its first formal step toward a U.S. stock market listing. On Monday, the company confirmed that it had submitted a confidential draft registration to the Securities and Exchange Commission for an initial public offering.
Headquartered in the Netherlands, Universal is already a dominant force in the global music business, with a catalogue that includes many of the world’s most streamed artists on platforms like Spotify and Apple Music. The IPO filing does not yet disclose how many shares will be sold or at what price.
This planned offering is tied to a prior agreement with Pershing Square, the hedge fund founded by Bill Ackman. As part of that deal, Pershing obtained the right to request a U.S. listing if it sold at least $500 million of its Universal holdings in the process. Ackman disclosed in January that Pershing had invested $3.3 billion in the company, making it one of the music firm’s major outside backers.
Universal’s revenue in 2024 was fueled by blockbuster album releases and streaming royalties. Among its biggest commercial wins were new records from Taylor Swift, Sabrina Carpenter, and Billie Eilish — all of whom rank among the top global streaming artists. These performers are signed to Universal-owned or affiliated labels, giving the company strong leverage in an increasingly platform-driven industry.
That leverage was on full display in early 2024 when Universal pulled its music from TikTok during a heated royalties dispute. After months of negotiations, the two sides reached a settlement in May, allowing Universal’s catalogue to return to the platform.
While Universal is initiating the listing process, it clarified that it will not benefit directly from the sale of shares. The proceeds will go to existing shareholders who choose to sell as part of the IPO.
A timeline for the public debut has not been disclosed, but the filing indicates that Universal is preparing for a significant shift in its ownership structure — and possibly a broader investor base in the United States.