Universal Music Group said on Wednesday it would sell half of its equity stake in Spotify and double its share buyback programme, as it reported first-quarter revenue held back by a weaker U.S. dollar.UMG said proceeds from the stake reduction would be used for the buyback and also shared with artists.The move comes three weeks after activist investor Bill Ackman made an unsolicited $64 billion bid for UMG, arguing that the market was not fully valuing its 2.7-billion-euro Spotify stake. Ackman proposed selling the holding and using 1.5 billion euros of the proceeds as part of the takeover’s cash consideration.UMG’s board has now moved independently, approving a sale on its own terms rather than returning the proceeds directly to shareholders, as Ackman had advocated.The decision allows UMG to honour its “Taylor Swift clause” – a commitment made in 2018 when the pop star re-signed with the label on the condition that any proceeds from a Spotify stake sale would be shared with all artists on a non-recoupable basis.UMG said it also planned to launch an additional €500 million share buyback, subject to shareholder approval at its annual general meeting, doubling its total buyback authorisation.The board said it views the shares as undervalued relative to the company’s performance and prospects.First-quarter revenue came in at 2.9 billion euros ($3.4 billion), flat year-on-year in reported terms but up 8.1% in constant currency.Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 3.8% to 636 million euros, but rose 3.9% in constant currency.Top sellers in the quarter included BTS, Taylor Swift, Olivia Dean, Morgan Wallen and the K-Pop Demon Hunters soundtrack, the company said.