On Friday (June 12), MBW spotted via an SEC filing that Tencent Music Entertainment (TME) had acquired 4 million Class A shares in Warner Music Group in a transaction worth around $100m.
Those 4m shares equated to 5.2% of outstanding Class A shares, and 0.8% of Warner Music Group as an entire company.
We’ve subsequently learned, via an additional filing also lodged with the SEC on Friday (see below), that China’s Tencent Holdings – the majority owner of TME – has itself acquired a separate stake in Warner of the same size as TME’s (4 million shares / 0.8% of Warner’s company).
Tencent Holdings did so via its 100% subsidiary, Huang River Investment Ltd.
Both of these transactions took place on Wednesday, June 3, the day Warner floated a portion of its company on the Nasdaq. And both of them were worth circa $100m.
This means that the Wall Street Journal’s earlier report suggesting that Tencent was considering a $200m acquisition of WMG shares was right on the money.
It also means that Tencent – via Huang River and via TME – now controls 8 million Class A shares in Warner, equivalent to 1.6% of the entirety of the music company. (WMG remains majority-owned, privately, by Access