Deals

Tencent Acquires Stake in Newly Public Warner Music Group

The Warner Music Group logo is displayed on a water tower above the company's headquarters in the Arts District neighborhood of Los Angeles, California, on June 3.

Photographer: Patrick T. Fallon/Bloomberg
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Tencent Holdings Ltd., China’s largest social media company, acquired a 10.4% stake in the Class A shares of Warner Music Group Corp., a bet on the industry’s long-term growth prospects following the U.S. music label’s $1.9 billion initial public offering last week.

Tencent purchased 8 million Class A Warner Music shares, according to a regulatory filing Friday. The U.S. music group is controlled by billionaire Len Blavatnik through his ownership of Class B stock with supervoting rights. Including all of the classes of stock, the company holds a 1.6% stake.