A remarkably good day for music companies in the stock market, Warner Music Group – which has seen its stock participate in a higher IPO of Universal Music – announced on Tuesday that it had sold a total of 2,340,000 shares of the company’s common stock to Morgan Stanley & Co., a subsidiary of Access Industries As the only underwriter on offer. According to the announcement, stockholders are selling all shares of Class A common stock, and Warner will not receive any revenue from this offer (although access to Lane Blavatnik, which acquired WMG in 2011 and took it public last year).
Warner’s closing share price on Tuesday was based on 45, which would put the stock worth about 10 105 million.
The deal – which is about .4% of Warner – is certainly no coincidence: Warner has seen a healthy push in the wake of the UMG IPO, it has been able to sell shares at a profit, and the acquisition of Morgan Stanley will likely push Warner’s stock even further.
Despite a rocky Monday for most U.S. stocks, the S&P 500 has fallen 1.7% for its worst trading day since May 12, with news of UMG’s splash lifting Warner Music stock up nearly 10% in today’s trading.
The announcement states that Morgan Stanley offers to sell common stock shares in one or more Nasdaq transactions, over-the-counter markets, through the transaction in question or otherwise at a fixed price or price, which may change, subject to receipt and acceptance and in whole or in part. Subject to the right to refuse any order.
Warner’s registration statement, including a prospectus, relating to the offer, was previously filed with the U.S. Securities and Exchange Commission and will be available on the SEC or Warner’s website.