Warner Music (WMG) cuts IPO price

Warner Music Group (ticker: WMG), which is scheduled to go public today, has reportedly reduced its IPO price range to $17 per share from $22-$24.  WMG is selling 32.6 million shares in the offering.

The company has been widely criticized for planning to use nearly all of the IPO proceeds to pay back current shareholders, rather than investing the proceeds in its business.  Recently, rock band Linkin Park publicly blasted the company for its plans.

Expected proceeds based on previous pricing:
Price range: $22 - $24
x Shares offered: 32.6 million
= Expected proceeds: $717.2M -  $782.4M

Expected proceeds based on new pricing:
Price range: $17
x Shares offered: 32.2 million
= Expected proceeds: $554.2M