Warner Music Group raises $250m to fund acquisitions

Warner Music Group raises $250m to fund acquisitions

Warner Music Group has raised $250 million (£192.2m) in debt to fund further acquisitions.

WMG announced that it commenced the private offering through its wholly owned subsidiary, WMG Acquisition Corp. The 3% secured notes are due in 2031.

“The Company intends to use the net proceeds of the Offering to fund a portion of the aggregate cash consideration for certain acquisitions,” said the company in an SEC filing.

The move will lead to speculation about the major’s plans to buy big, especially in the light of reports that Kobalt is considering a sale (although the indie giant is likely to be valued above $1 billion).

Last year WMG partnered with Providence Equity Partners to invest in recorded music and publishing catalogues. It recently acquired digital media company IMGN.

The move by Warner follows the $550m (£384.4m) in debt raised by WMG in August, though that is not designated for acquisitions.

The major launched its IPO in June.

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