Back in 2011, billionaire Len Blavatnik bought Warner Music Group for $3.3 billion and the company has grown ever since. In fact, the music industry as a whole has gained significant ground due to the rise of subscription services, like Spotify and Apple Music. This week, Warner Music Group Corp. announced that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) for a proposed initial public offering (“IPO”) of its common stock.
In a statement from Warner Music Group’s website, they say the shares of common stock to be sold in this offering are proposed to be sold by certain of Warner Music Group’s stockholders. Also, the number of shares of common stock to be offered and the price range for the proposed offering have not yet been determined. Morgan Stanley, Credit Suisse and Goldman Sachs & Co. LLC are acting as joint bookrunning managers for the offering.
Warner Music Group’s recorded music division generated $3.84 billion of revenue in fiscal year 2019, representing 86 percent of total revenues, according to the filing. The division is home to such artists as Ed Sheeran, Bruno Mars and Cardi B, and includes storied labels like Atlantic, Elektra, Warner Music Nashville and the recently rebranded Warner Records. Its publishing arm, Warner Chappell Music, has a catalog of more than 1.4 million copyrights, including from songwriters like Twenty One Pilots, Lizzo and Katy Perry. It generated $643 million of revenue in 2019, or 14 percent of total revenues. The company is also home to global music distribution company Alternative Distribution Alliance, live music app Songkick, EMP Merchandising and UPROXX.
With a legacy extending back over 200 years, Warner Music Group (WMG) today brings together artists, songwriters and entrepreneurs that are moving entertainment culture across the globe. Operating in more than 70 countries through a network of affiliates and licensees, WMG’s Recorded Music division includes renowned 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 and Warner Music Nashville.
WMG’s music publishing arm, Warner Chappell Music, has a catalog of more than 1.4 million copyrights spanning every musical genre, from the standards of the Great American Songbook to the biggest hits of the 21st century. Warner Music Group is also home to ADA, the independent artist and label services company, as well as consumer brands such as Songkick the live music app, EMP the merchandise e-tailer, and UPROXX the youth culture destination.
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