Warner Music Group launches its IPO – we’ve been filleting the filing
Posted on: 26 mai 2020, by : Stuart Dredge

Warner Music Group’s initial public offering launches today, with the music group offering 70m shares in a public offering whose price is expected to be between $23 and $26 per share.
“The offering consists entirely of secondary shares to be sold by Access Industries, LLC and certain related selling stockholders,” explained WMG in its announcement. “The underwriters will have a 30-day option to purchase up to an additional 10,500,000 shares of Class A common stock from the selling stockholders. The Company will not receive any proceeds from the offering.”
The group will be listed on the Nasdaq stock market with the ticker symbol WMG. Its S1 regulatory filing has been published today – you can find it here – with the prospectus for investors considering investing in a company whose recorded music business generated $3.84bn of revenues in its last fiscal year, with its publishing arm adding another $643m.
The prospectus doubles as a defence of major labels’ role in the modern music industry, claiming that “Today, global music entertainment companies such as ours are more important and relevant than ever.” It continues:
“The traditional barriers to widespread distribution of music have been erased. The tools to make and distribute music are at every musician’s fingertips, and today’s technology makes it possible for music to travel around the world in an instant. This has resulted in music being ubiquitous and accessible at all times. Against this industry backdrop, the volume of music being released on digital platforms is making it harder for recording artists and songwriters to get noticed. We cut through the noise by identifying, signing, developing and marketing extraordinary talent.”
It’s a long document, and we’ve only had time to skim-read it so far, but there are some fun nuggets, including:
The post Warner Music Group launches its IPO – we’ve been filleting the filing appeared first on Music Ally.
Source: Music ally

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