Hong Kong conglomerate Tencent has acquired a roughly $241 million stake in Warner Music Group, according to documents filed with the Securities and Exchange Commission on Friday.
Tencent Music Entertainment bought four million shares in Warner Music on June 3 — the day the company went public on the Nasdaq, trading at $30.12 per share — according to the filing, valuing the stake at roughly $120 million.
It’s a relatively small stake in Warner Music, representing a 5.2% stake of the company’s Class A shares, but less than 1% of its overall outstanding shares.
In addition to the acquisition by Tencent Music, a Tencent Holdings subsidiary, Huang River Investment Limited, also acquired four million shares on June 3, at a roughly $120 million value.
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The recent investment gives Tencent a stake in two of the worlds largest music labels. In December the company bought a 10% non-voting stake in Universal Music Group, which valued the company at an astronomical $33.7 billion.
Warner Music went public on June 3, with 510,000,000 total shares priced at $25 per share, valuing the public company at $12.75 billion.
WMG is the home to record labels Atlantic Records, Warner Records, Elektra Records and Parlophone Records, as well as publishing business Warner Chappell Music.
Warner Music Group artists include Bruno Mars, Ed Sheeran, Death Cab For Cutie, Wiz Khalifa, Cardi B, Gary Clark Jr., Jason Derulo, Echosmith, The Flaming Lips, Jenny Lewis, Linkin Park, Muse, Nico & Vinz, Prince, Red Hot Chili Peppers, Royal Blood, Blake Shelton, Hunter Hayes, Brett Eldredge, Cole Swindell, Frankie Ballard, Dan + Shay, Ashley Monroe, Randy Travis, Delta Rae, Ben Fields, Residual Kid, Cold Fronts, Neil Young, Green Day, Michael Bublé, Josh Groban, Slipknot, Rush, Theory of a Deadman, and Killswitch Engage, among many others.
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