The shares, purchased in separate transactions by two Tencent subsidiaries for $200 million when the third-largest music company made its debut on the Nasdaq last week, are now worth almost $250 million, having climbed 24% to $31 apiece, from $25 in their debut last week. The Wall Street Journal reported last month that Tencent was in discussions to purchase such a stake as an anchor investor in Warner's stock market debut. The stake was disclosed Friday. Warner Music, home to recording stars including Cardi B, Ed Sheeran and Lizzo, listed 77 million Class A shares--or 15% of its stock--last Wednesday. Tencent's eight million shares represent 10.4% of Warner's publicly traded stock.
The case pitted a Pennsylvania woman, Stephanie Lenz, against record company Universal Music Group (UMG), the Vivendi SA-owned unit that enforces Prince's copyrights. She sued Universal Music Group after it directed the video-sharing website YouTube to remove a 29-second video she had posted in 2007 that showed her 13-month-old son dancing to the 1984 song.
Spotify just signed a deal with Warner Music to secure its artists for the streaming service's users worldwide. This is the last big label after Universal Music Group, Merlin and Sony to renew ties with Spotify, and now pretty much everyone's on board. Spotify didn't provide any details on the Warner deal, which has been rumored to be in the works since last month. The streaming company didn't note whether Warner's music would be subject to the same conditions as in the deals Spotify struck with other labels -- namely, whether new records would be held off the service's non-paying tier for two weeks after launch, a limit that first surfaced in its agreement with Universal back in April. "Our partnership with Warner Music Group will help grow the new music economy where millions of artists can instantly connect with fans, and millions of fans can instantly connect with artists," said Stefan Blom, Chief Content Officer at Spotify.