- The initial public offering would give the Warner Music Group a valuation of up to $13.3bn by offering a 14% stake of the recording company.
The Warner Music Group Corp., home to artists Lizzo, Ed Sheeran, Blake Shelton, Cardi B, Coldplay, Hamilton and more announced today the launch of an initial public offering of 70,000,000 shares of its Class A common stock pursuant to a registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission (“SEC”). As the markets are observed to improve in the past weeks, along with the resilience of the music industry, WMG would be one of the first major listings since the COVID-19 pandemic affected global markets.
WMG initially filed to go public in February but placed a hold on the offering amid the pandemic and the negative impact on stock markets. Owner of the recording group, Len Blavatnik, stated on Tuesday that it is offering 70 million shares or a 14% stake of the company, with each stock offering at a target price between $23.00 and $26.00 per share. The offering should give WMG a valuation of $13.3bn, as reported by Financial Times. WMG will be traded on The Nasdaq Stock Market LLC under the ticker symbol “WMG”.
Blavatnik’s investment company Access Industries bid on Warner Music Group back in 2011 and purchased and privatized the then-struggling company for $3.3 billion. Access Industries will keep all sale proceeds and the majority voting power of WMG’s outstanding common stock.
Morgan Stanley, Credit Suisse, and Goldman Sachs are jointly book-running and underwriting the offering. The underwriters will have a 30-day window to purchase up to 10,500,000 additional shares of Warner’s stock.
The recording music industry is dominated by Universal Music, Sony Music, and Warner Music Group. The Warner Music Group holds a legacy that extends back over 200 years. WMG operates in over 70 countries through network affiliates and licensees to bring together artists, songwriters, and entrepreneurs that move the entertainment culture worldwide. WMG’s Recorded Music division includes well-known labels such as Asylum, Atlantic, Big Beat, Canvasback, Elektra, Erato, First Night, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Rhino, Roadrunner, Sire, Spinnin’, Warner Records, Warner Classics, Warner Music Nashville, independent label ADA and youth culture platform UPROXX.