Warner Music Group prices IPO at $23 to $26 per share

Warner Music Group announced its plans to go public on the Nasdaq. The initial public offering will be between 23 to 26 dollars a share. Yahoo Finance's Alexis Christoforous and Brian Sozzi discuss.

Video Transcript

BRIAN SOZZI: Let's take a look at one of the companies we're watching on yahoofinance.com. Warner Music Group announced its plans to go public on the NASDAQ. The initial public offering will be between $23 and $26 a share.

Alexis, Warner filed an amended filing this morning with the SEC, and buried halfway down they tell you how sales have been in April. Their streaming sales were up 12% for April alone. This company was making money. Profits are holding up well. All in all, this might be a pretty hot IPO.

ALEXIS CHRISTOFOROUS: Yeah, it could be. And, you know, we just spoke with, of course, the president of the stock exchange-- New York Stock Exchange, Stacey Cunningham, a little while ago, and she said the pipeline for IPOs starting to pick up, and they've actually had some IPOs during this pandemic, although it's sort of been under the radar. Of course, Warner Music would be going public on the NASDAQ, their rival exchange.

But if they do go ahead with this at $20-- between $23 and $26 a share, it would value the company at $1.8 billion. Now remember, they were supposed to go public in February, and then the world as we know it got upended, and they decided to hold off for a little bit.

You're talking about streaming being strong, but what about some other areas that aren't right now? No concerts going on. Video shoots having to be canceled. Merchandise sales-- I mean, they're able to sell those things at concerts. Really not seeing that happen right now. So it will be interesting to see what appetite is like for a company like Warner Music during this pandemic. Are they diversified enough to get a lot of interest from investors?

BRIAN SOZZI: But they have Cardi B and Bruno Mars, Alexis. That's pretty cool-- pretty cool.

ALEXIS CHRISTOFOROUS: I'm into it, absolutely. So we'll have to see, you know, when exactly they go public if they're able to build on that momentum.

BRIAN SOZZI: All right, let's leave it there.