Warner Music returned to the Stock Market after nearly a decade as a private business and it’s been a good first week.
At the end of their first day trading on the Wall Street market last week, Warner Music shares finished 20.48% up on their initial price. They added $2.5 billion to the company’s value in a day and shares went from $25 to $30.
The week since hasn’t seen a further leap up in value but it has been impressively steady, showing that investors have confidence in the company. With music profits growing increasingly in recent years thanks to the streaming industry there are few concerns about the future of popular music.
The music streaming industry is so huge that, although it’s only really come to fruition in just over a decade, last year it made up 4/5ths of the US recorded music revenue. Whilst streaming is democratising the industry by making global recognition easy for independent artists, major labels are still profiting the most from its success.
Warner Music peaked at just over $32 dollars in the last week and currently sits at just under $30. So it has been a great steady week to return for the major label after they went private in 2011.