Howard Hughes Rises Nearly 3% In Pre-Market As Bill Ackman Exits From Universal Music Group's Board To Prioritize New Investments

Howard Hughes Holdings (NYSE:HHH) surged 2.78% during Wednesday pre-market, after non-Executive Director, Bill Ackman, stepped down from the Board of Directors of Universal Music Group N.V. (OTC:UMGNF). The decision comes in light of new obligations towards Howard Hughes that Ackman has undertaken.

What Happened: As per a press release from Universal Music Group, the music label representing Taylor Swift, Ackman has chosen to resign from his role as a non-executive director with immediate effect. This decision is linked to new executive and board duties resulting from Ackman’s commitments in Pershing Square Capital Management as well as his recent investments, such as Howard Hughes Holding.

During his tenure at UMG, Ackman witnessed the company’s transformation from a private entity to a successful public enterprise. He commended the leadership of Sir Lucian Grainge and the UMG team, asserting that the company is “extremely well positioned for future growth and profitability,” as per a press release from Pershing Square.

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Why It Matters: Ackman, founder and CEO of Pershing Square, has been a major investor in UMG since 2021. In March this year, his firm sold a 2.7% stake in the music company, raising $1.4 billion, after initially acquiring around 10% of UMG.

Ackman’s belief in UMG’s long-term growth trajectory has been evident throughout his tenure on the board. In a letter to investors in March, he expressed his confidence in UMG’s future prospects, citing continued penetration of streaming, recurring price increases, and new product tiers for superfans as the driving factors for the company’s next era of growth.

Ackman's departure from Universal's board comes on the heels of UMG's Q1 2025 financial results, which reported a 9.5% year-over-year increase in revenue and a 10% rise in adjusted EBITDA at constant currency.

Earlier this month, Ackman increased his stake in real estate firm Howard Hughes Holding (NYSE:HHH) to 46.9%, investing an additional $900 million, as part of his goal to build a diversified holding company inspired by Warren Buffett's Berkshire Hathaway (NYSE:BRK) (NYSE:BRK).

On Tuesday, the OTC shares of Universal Music Group rose 3.24% to close at $30.94. On a year-to-date basis, it gained 23.91%.

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