By Emmanuel Legrand
Warner Music Group will be quoted on the NASDAQ stock market in New York on June 3, 2020 under the symbol "WMG." The initial public offering is for 70,000,000 shares of its Class A common stock, or 13.7% of the company's shares.
On June 2, WMG will announce the opening share price, expected to be between $23 and $26 per share. A $26 share price would value the company at $13.26 billion and generate $1.8bn in income.
Initially, WMG's parent company Access Industries, the investment tool owned by billionaire Len Blavatnik, planned the IPO in March but had to delay the proceedings due to the coronavirus pandemic. The sale of the shares will not benefit directly WMG since they will be sold by other stockholders such as Morgan Stanley, Credit Suisse Securities, Goldman Sachs, BofA Securities, Citigroup Global Markets and J.P. Morgan Securities, among others.
Meanwhile, it appears that China's entertainment group Tencent is seeking to acquire equity in WMG, a few months after succeeding in acquiring 10% of Universal Music Group for $3bn. According to a Wall Street Journal Report, Tencent is in talks to invest $200 million in WMG, ahead of the IPO.
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