The success of the Warner Music IPO continues to resonate. After watching its stock rise 20% on the first day of trading, both music and financial analysts weigh in on what it means for investors. Meanwhile, The Eagles’ Don Henley weighs in with the quote of the week.
Investors gave a big note of confidence to record labels and music publishers. Warner opened at $27 on the Nasdaq on Tuesday, valuing the company at $16.27 billion with a healthy 21.5 times EBITDA multiple. (Over the last 12 months, the average Nasdaq stock had an average EV-to-EBITDA multiple of 17.0.)
Analysts Are Bullish on Warner Music IPO (Variety)
If you’re betting on streaming and growth dynamics in the music industry over the coming years, this is your shot.
Henley called the copyright law “a relic of a MySpace era in a TikTok world.”