Warner Music Decides on IPO Range
Warner Music Group has decided on a range of $22 to $24 for its initial public offering.
The company plans on selling 32.6 million shares which should make up to $782 million.
Warner Music is also in discussions with Time Warner to buy back warrants that let the company take a 15 percent stake at a discounted price.
According to a CNN article,
“By exercising the three-year warrants, Time Warner could pay $284.4 million based on an IPO of $23 a share, the music company said. If Time Warner pays cash, it would own about 19 million shares of common stock and if it does not use cash, 6.6 million. CNN/Money is a unit of Time Warner.
A group of investors led by media mogul Edgar Bronfman Jr. bought the smallest of the four major record companies from Time Warner last year for $2.6 billion. The warrants were issued in connection with the takeover by Bronfman, Thomas H. Lee Partners, Bain Capital and Providence Equity Partners.”
The company was sold by Time Warner only a year ago.
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