When billionaire Len Blavatnik bought Warner Music Group for $3.3 billion in 2011, the major labels were still reeling from the digital revolution that had turned the business upside down.
Since then, according to The LA Times, the recorded music industry has gained significant ground thanks to the rise of streaming subscription services, such as Spotify and Apple Music, that have helped to offset losses from piracy.
In the latest sign of renewed optimism, Warner Music Group, the third-largest music company by market share, has signaled its intent to go public.The Los Angeles-based company, which represents artists including Ed Sheeran and Cardi B, said in a regulatory filing Thursday that it intends to hold an initial public offering, though it has not said when.
Warner Music has grown substantially in value from what it was worth nine years ago, when Blavatnik bought the publicly traded company and took it private, according to analysts.
A Warner Music spokesman declined to comment.
IPOs are inherently risky, and there’s no certainty that an offering by Warner Music will happen. Last year, talent agency owner Endeavor canceled plans to sell its shares, soon after exercise equipment maker Peloton’s stock struggled in its first day of trading.
Still, market conditions may be more ripe for Warner Music.
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