Source: SOPA Images / Getty
Warner Music Group Files for IPO
In the stock market, IPO means “Initial Public Offering”. That’s when a company initially allows the public to buy and sell stocks on their organizing. After spending 8 years as a private company Warner Music Group announced on Thursday, filing an Initial Public Offering request through the U.S. Securities and Exchange Commission. This is important because Warner can become the most the top “music” stock out of the three companies that virtually run the whole music industry: Warner Music Group, Universal Music Group and Sony Music Group.
This decision comes after WMG’s most lucrative first quarter in which the label pulled in $1.25 billion in revenue and netted $122 million in income. That makes it nearly a 42% income increase from the same quarter last year. It’s been the highest quarterly revenue Warner had since their divorce from Time Warner Music Group 16 years ago in 2004.
According to Warner‘s S-1, it makes 86% of its revenues by managing the careers of Lizzo, Beyonce, Metallica, Ed Sheeran, Madonna, Cardi B, Roddy Ricch and other mega stars. Warner’s new public offering comes just a little more than a month after a similar move from Universal Music Group in December 2019.
SOURCE | RollingStone.com
