Universal Music Group shares slid up to 7.6% in early European trading, touching 17.74 euros. The drop followed Pershing Square’s decision to sell its entire holding, a stake worth $1.5 billion. Bill Ackman’s hedge fund exited the label after five years, cashing in on a position acquired during the 2018 IPO.

The sale came just weeks after a $65 billion takeover bid for the company was rejected, prompting Pershing Square to unwind its position. The fund disposed of roughly 80.6 million shares and expects to net at least $600 million in profit. Universal simultaneously repurchased 250 million euros of stock under its existing 500‑million‑euro buyback program.

The 7.6% plunge rattled the European market, dragging the STOXX Europe 600 Music index lower and prompting a sell‑off in related streaming stocks. Analysts noted the move highlights valuation sensitivity after the failed $65 billion bid, suggesting investors may reassess growth assumptions for the recorded‑music sector.

Investors now face a steeper near‑term correction, with the stock’s year‑to‑date decline hovering near 20%. The exit removes a major activist holder, potentially easing pressure on management to pursue further strategic deals. The transaction underscores how quickly activist capital can shift once a merger prospect evaporates.