Chinese internet giant Tencent Holdings Ltd is reportedly in talks to invest $200mn in Warner Music Group. The recent development from Tencent comes just days ahead of the record company’s slated initial public offering.
According to a Wall Street Journal report, Warner Music is also working to line up institutions that, along with Tencent, would serve as anchor investors contributing a total of more than $1 billion toward a fundraising goal of as much as $1.8 billion.
It is expected that the listing by the world’s third-largest recording label, could potentially be the largest New York IPO so far in 2020. The label is home to big artists such as Cardi B, Ed Sheeran and Bruno Mars,
Earlier the IPO was slated for March, but due to uncertainty arising because of the COVID-19 pandemic, the company delayed its IPO.
The company is expected to price its IPO on June 2 with the stock then debuting on Nasdaq the following day under the symbol “WMG”.
Although media reports are speculating the transaction for a while, none of the companies have given any official confirmation yet.
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