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May 11, 2005

Letting the air out of the Warner Music IPO balloon

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Posted by Dominic Basulto

According to Dow Jones Newswires, Warner Music is cutting the size of its upcoming IPO, from approximately $750 million to less than $550 million. Insiders speculate that the company will reduce the number of shares it will sell to the public to about 27.2 million from 32.6 million; in addition, Warner Music is cutting the price range for the deal to $19 to $20 a share from $22 to $24 a share.

UPDATE: Warner Music Group's (WMG) IPO raised $554.2 million; the IPO was finally priced at $17 per share.

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