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 has advanced 9.1%.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

07-18-23 1025ET

Copyright (c) 2023 Dow Jones & Company, Inc.