Report: Tencent in talks to invest $200m in Warner Music Group

Report: Tencent in talks to invest $200m in Warner Music Group

Tencent Holdings is reportedly in talks to invest $200 million (£161.2m) in Warner Music Group.

The Wall Street Journal stated that the Chinese tech giant was set to secure the stake in WMG ahead of the major’s IPO on June 3.

Warner Music is said to be lining up institutions, alongside Tencent, who would contribute $1bn (£800m) towards an fundraising goal of up to $1.8bn (£1.45bn). 

WMG is expected to price its IPO on Tuesday (June 2), with the stock then launching under the symbol WMG on the NASDAQ on Wednesday (June 3).

Warner has indicated a guide price between $23 and $26 per share. The offering consists entirely of secondary shares to be sold by Len Blavatnik’s Access Industries and other related selling stockholders. WMG will not receive any proceeds from the IPO offering. 

The major had initially delayed its IPO due to market turbulence resulting from Covid-19.

In March, Tencent finalised a 10% stake in Universal Music Group and launched a partnership between the major and Tencent Music Entertainment

Tencent and WMG have not commented on the report.

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