WARNER Music Group, one of the globe’s “big three” recording firms, is set to proceed with its initial public offering (IPO) valuing the company up to US$13.3 billion (RM56.7 billion).

Evidence of streaming’s boon to the once-beleaguered recording industry, the closely watched listing could come as soon as today, according to US media reports.

The debut planned on the Nasdaq comes less than a decade after Warner was purchased for US$3.3 billion in 2011 by Access Industries, a group of investors headed by billionaire Len Blavatnik.

Warner – home of Cardi B and Ed Sheeran, as well as lucrative back catalogues from the likes of Madonna – hopes to sell 70 million shares at between US$23 and US$26 apiece, which would value the company at US$11.7 billion to US$13.3 billion.

Access will maintain its majority stake and collect proceeds from the sale.

Warner initially announced IPO plans in February before postponing them over the coronavirus pandemic, still considered a risk factor to the company’s business.

The infection’s spread dealt the music industry a major blow especially to live performances, with a Goldman Sachs report projecting a 25% drop in global revenue, though forecasting a brighter outlook for next year.

The impending deal coincides with yesterday’s music industry work-stoppage protest in solidarity with the anti-racism demonstrations gripping the US.

According to The New York Times, Warner executives have told employees to participate in the blackout day – but the IPO will go on.

Warner owns and operates some of the world’s most successful labels, including Atlantic Records, Elektra Records, Warner Records and Parlophone.

It also owns the globe’s major music publisher, Warner Chappell Music.

In April, Warner saw a 12% jump in streaming revenue. In its last fiscal year, it reported US$4.5 billion in revenue, up from US$3 billion in 2015. – AFP, June 3, 2020.