Warner Snare US$1.9B IPO After Streaming Boom
Warner Music Group has notched the biggest US IPO listing for this year, after raising over $1.9 billion in an IPO which commentators claim shows how streaming has transformed the music industry.
The music label’s shares opened at US$27 after initially being priced at US$25 – notching a market value of US$13.8 billion.
Shares skyrocketed as much as 23% to US$30.85.
The company announced an IPO of 77,000,000 shares up from 70,000,0000 Class A common stock.
The news sees Warner become the only one of the “big three” music companies to trade publicly as a stand-alone entity, versus Sony Music Entertainment and Universal Music Group.
Commentators claim Warner is riding the ‘streaming wave’, which has proven to be a major revenue source for record labels and publishers.
In April, the company saw a 12% jump in music streaming revenues.
Digital revenues reportedly contributed over half the company’s 2019 revenues of US$4.5 billion – the biggest share from streaming.
Warner owns record labels and a music publishing company with catalogues boasting music from many pop culture icons including Dua Lipa and Lizzo, plus classic as Neil Young and Prince.