Sean "P. Diddy" Combs help promote Warner Music IPO

By: Urban Hustler Staff

---

The hip hop entrepreneur who recently sold his Bad Boy Entertainment music label to Warner Music for $30 million, helped fill up the ballroom at the W Hotel in midtown Manhattan where Warner Music Group was hoping it can win over cautious investors before its upcoming $750 million IPO.

 

An estimated 300 prospective investors attended the meeting, where the lights were dimmed and music videos blasted. "The entire world was there," said one fund manager who attended the road show.

 

After stabilizing somewhat in 2004, the record biz has seen CD sales fall 10% so far this year, making inveators very cautious about the industry. Warner, whose acts include Madonna, Green Day and Sean Paul, is seeking to raise $750 million and is set to sell a stake in the firm to the public next week. Warner Music Group owns a large music catalog, including a roster of 38,000 artists and 27 of the top 100 U.S. best-selling albums of all time.

 

Only $7 million of the $750 million from the IPO will go back to Warner, the rest going to pay down debt and to current investors selling their shares.

 

Edgar Bronfman Jr. and a goup of investor bought Warner Music Group from Time Warner in 2004 for $2.6 billion.

---