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Tencent acquires stake in newly public Warner Music Group
- At current prices, Tencent’s investment is worth more than US$246 million
- The music industry is enjoying a long-running financial renaissance, thanks to the popularity of streaming services
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Tencent Holdings acquired a 10.4 per cent stake in the class A shares of Warner Music Group Corp, a bet on the industry’s long-term growth prospects following the US music label’s US$1.9 billion initial public offering last week.
Shenzhen-based Tencent, which runs the world’s largest video games business by revenue and China’s largest social media platform, bought 8 million class A Warner Music shares, according to a regulatory filing on Friday.
At current prices, Tencent’s investment is worth more than US$246 million. That represents a quick gain from the initial price of US$25 a share that Warner Music fetched last week in its IPO.
In December, a consortium led by Tencent agreed to buy a 10 per cent stake in Universal Music Group, the world’s biggest music company.
Warner Music is controlled by billionaire Len Blavatnik through his ownership of Class B stock with super voting rights. Including all of the classes of stock, the company holds a 1.6 per cent stake.
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