2023-07-18 10:15:21 ET
Warner Music Group Corp. ( NASDAQ: WMG ) rose 4.1% on Tuesday morning after announcing a partnership with TikTok.
The multi-year, multi-product deal licenses the repertoire of Warner Recorded Music and Warner Chappell Music to TikTok, TikTok Music, CapCut and TikTok's Commercial Music Library, the companies said in a statement .
The deal is expected to create new revenue, marketing and insights opportunities for WMG's artists and songwriters, while deepening engagement with TikTok's audience.
As part of the deal, WMG and TikTok will find new ways to harness TikTok's revenue generation and promotional capabilities. Additionally, the companies have agreed to a licensing deal for TikTok Music, the premium subscription streaming service that recently launched in Indonesia and Brazil.
The deal also paves the way for WMG artists and songwriters to leverage the promotional capabilities and engage with the community of users on TikTok's sister video-editing app, CapCut.
WMG is down 14% year-to-date. The stock has five Strong Buy ratings from Wall Street analysts, six Buys, nine Holds, and one Strong Sell. WMG has a forward P/E of 31 compared to the nearly 19 average for the Nasdaq.
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Warner Music Group up after announcing TikTok deal