: Warner Music stock leaps after TikTok licensing partnership announced
Shares of Warner Music Group Corp. WMG jumped 4.5% in morning trading Tuesday, after the music recording and publishing company announced a licensing partnership with short-form mobile video giant TikTok, which is owned by China-based ByteDance Co. Ltd. Warner’s stock was up only 0.2% just before the announcement. Warner Music said the “multi-year, multi-product” deal covers the licensing of Warner’s recorded music library, as well as that of Warner Chappell Music, to TikTok, TikTok Music, CapCut and TikTok’s commercial music library. In addition, Warner’s artists will be able to find new ways of working with TikTok’s brand partners, as well as access to new monetization features, such as merchandizing and ticketing. Financial terms of the deal were not disclosed. “We are very excited to partner with Warner Music Group to create a shared vision for the future in which artists, songwriters, music fans, and the industry can all benefit from the power of discovery on TikTok platforms,” said TikTok Chief Executive Shou Chew. Warner Music’s stock has gained 0.4% over the past three months while the S&P 500 SPX has advanced 9.1%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.