The Chinese music company spent at least $200 million to scoop up 8 million shares of WMG Class A common stock on June 3.
Tencent has confidence in a publicly traded Warner Music Group, to the tune of at least $200 million. According to two new SEC filings, Tencent scooped up 8 million shares of WMG Class A common stock on June 3, the day the major label began trading on the Nasdaq at an initial price of $25 per share. (The stock ended Friday at $30.77, valuing Warner at $18.2 billion.)
Four million shares were purchased by Tencent Music Entertainment, a streaming company of which Chinese conglomerate Tencent is a majority owner. Another 4 million shares were bought by Huang River Investment Ltd, a wholly-owned subsidiary of Tencent Holdings Ltd, according to the Schedule 13G filed with the SEC on Friday (June 12).