Warner Music's (WMG) IPO fizzles; declines 4% on opening day

Apparently, Warner Music's (ticker: WMG) reduced IPO price of $17 was not low enough.  The company finished its first day of trading down 3.5% to close at $16.40, after hitting an intra-day low of $15.75.

Quickm comments:
In addition to the much publicized use of its IPO proceeds (all but $7M went to selling stakeholders) and the recent backlash from rock band Linkin Park, WMG also suffered from some bad timing.  Yesterday, Yahoo! announced the launch of its online music store.  Digital music (in both legal and illegal forms) represents a significant threat to WMG.  Yahoo! announcement added yet another competitor into the mix.

Here is WMG intra-day stock chart in 1-minute intervals: