Investing.com -- Universal Music Group NV said Wednesday it will sell half of its stake in Spotify Technology SA and increase its share buyback program to €1 billion.

Universal Music said it plans to launch an additional €500 million share buyback program once it completes the €500 million buyback announced in March.

The announcement comes as the company addresses concerns about its stock valuation raised by billionaire investor Bill Ackman, who recently made an offer for the record label that values it at approximately $65 billion.

In Ackman's proposal, he said he would sell the company's entire Spotify stake to raise €1.5 billion ($1.75 billion) after paying taxes and compensating artists.

Chief Executive Officer Lucian Grainge told analysts Wednesday during a call to discuss financial results that the company would not comment on Ackman's offer until the board completes its review.

The Netherlands-based music company, which represents artists including Taylor Swift, Kendrick Lamar, Billie Eilish and the Beatles, reported first-quarter revenue from subscription services grew 12.5% on a constant-currency basis to €1.3 billion, surpassing analyst estimates of 10.1% growth.

The company attributed the growth to price increases, its Streaming 2.0 program aimed at boosting revenue per user through premium tiers and monetization of super fans, and its recent acquisition of Downtown Music. Total revenue rose 8.1% to €2.9 billion on a constant currency basis.

Ackman's Pershing Square Capital Management, which controls more than 4.5% of Universal Music shares, is pushing to combine the company with a specially-created acquisition vehicle publicly traded in the United States. Ackman has stated Universal Music's shares are undervalued and advocates moving the company's listing to New York and reorganizing its financial reporting.