Why Warner Music Is Going Public Now & How No One Saw It Coming

, as well as the Warner Chappell publishing company. In WMG’s most recent fiscal year, which ended Sept. 30, 2019, the company posted $256 million in net income on revenue of $4.48 billion, up 11.7% from revenue of $4 billion in 2018.estimates that WMG will be valued between $15 billion and $16 billion on the top end, and between $10 billion to $12 billion on the bottom end.

Whatever the ultimate valuation of WMG, it’s clear that Access and Blavatnik got a great deal. Since 2011, WMG has paid out dividends totaling $1.35 billion, and Access has been paid $90.2 million for managing its WMG investment and consulting on the company’s acquisitions -- for a total of $1.37 billion. That means Access has already taken in some $300 million in profit, with billions more to follow if investors buy into the initial public offering.

With the rising valuations of music assets, now could be a good time for Access, and Blavatnik, to take some money off the table. At the same time, Blavatnik seems to want to maintain some control over the company. The filing outlines Blavatnik’s plans to issue himself and other insiders new Class B shares that will have 20 times the voting power of the Class A shares available in the IPO.

Control isn’t the only challenge a potential IPO will face. WMG has nearly $3 billion in debt -- up from $2.217 billion when Access bought it in 2011 -- and its filing notes that the structure of its existing debt and a revolving credit facility gives it the ability to borrow more. So while the company says it plans to pay dividends regularly, potential investors could have concerns about how debt payments could affect that.

warnermusic

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why YouTube and the Music Biz Are Getting Along Better Than EverThe industry’s biggest frenemy has always helped break acts like rising rap star Roddy Ricch. Now it’s signing up more subscribers and bringing in serious revenue — and finally winning over some label executives. YouTube anyways neo zone out march 6th YouTube LYOR COHEN AKA THE 360 DEAL MAKER. OFCOURSE HE WILL MANIPULATE CERTAIN ARTISTS NUMBERS. lyorcohen RIGHT YouTube
Source: billboard - 🏆 112. / 63 Read more »

Why the Senate should reject Judy Shelton’s nomination to the FedThe Senate must protect the central bank by rejecting overtly political nominations to its board Republicans are full of fear. She’s not Jewish? I disagree she’s fine
Source: TheEconomist - 🏆 6. / 92 Read more »

Here's why the latest 'Call of Duty: Modern Warfare' update is so big'Call of Duty: Modern Warfare' update 1.14 just released, and it's a whopping 60GB. In tweets, developers explain the reason for its huge file size.
Source: Newsweek - 🏆 468. / 52 Read more »

Why Do Restaurants Waste So Much Water Defrosting Food?On a typical day at a Jax Fish House & Oyster Bar location, cold water flows from kitchen sink faucets constantly—sometimes for up to 12…
Source: foodandwine - 🏆 366. / 59 Read more »

Yara Shahidi On Why Gen Z Shouldn’t Underestimate Their PowerFrom getting out the youth vote to elevating diverse identities onscreen and off, Yara Shahidi is empowering a generation of activists to drive political and social change.
Source: ForbesWomen - 🏆 477. / 51 Read more »

Why the Senate should reject Judy Shelton’s nomination to the FedJudy Shelton has spent much of her career questioning whether central banks should exist at all Needs to take a basic course in economics instead of a Fed Chair! But diversity is good right ? Unsuitable... 'In her 2011 book, 'Fixing the Dollar Now,' she advocated for expanding or contracting the money supply 'as necessary to maintain the steady value of gold in dollars,' a policy that likely would have entailed hiking interest rates during the Great Recession...'
Source: TheEconomist - 🏆 6. / 92 Read more »