Chinese Internet service provider Tencent Holdings Ltd (0700.HK) said on Friday that it is discussing an investment worth $200 Million in the world’s largest music company Warner Music Group (WMG) as part of its initial public offering next week.
Warner Music Group first announced its intention to launch an IPO in February. However, on March 2, the record label decided to postpone it because the coronavirus pandemic severely affected the economy of the United States and Europe.
Warner Music Group is also lining up other potential partners that could serve as anchor investors along with Tencent. The offering is expected to value Warner Music from $11.7 billion to $13.3 billion and is set to begin trading on June 3.
According to Dealogic’s (DL) data, it would be the biggest initial public offering in 2020.