Max Lousada - Sep 29, 2021 Form 4 Insider Report for Warner Music Group Corp. (WMG)

Role: CEO, Recorded Music
Signature: /s/ Trent N. Tappe, as Attorney-in-Fact
Stock symbol: WMG
Transactions as of: Sep 29, 2021
Transactions value $: -$20,942,273
Form type: 4
Date filed: 10/1/2021, 06:03 PM
Next filing: Jan 17, 2023

Transactions Table

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Ownership	Footnotes
transaction	WMG	Class A Common Stock	Sale	-$20.9M	-510K	-32.72%	$41.05	1.05M	Sep 29, 2021	By LLC	F1, F2, F3
holding	WMG	Class A Common Stock						2.61M	Sep 29, 2021	Direct	F4

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id	Content
F1	Represents shares of the Issuer's Class A Common Stock sold pursuant to the redemption of 550,000 Class B Units of Management LLC, after taking into account a number of shares of Class B Common Stock having a value equal to $1,753,523 on the date of such redemption, which is the sum of the benchmark amounts of the Class B Units redeemed.
F2	Shares of the Issuer's Class A Common Stock represented by 1,048,784 Class B Units of WMG Management Holdings, LLC ("Management LLC") pursuant to the terms of, and subject to the limitations and restrictions set forth in, the Second Amended and Restated Limited Liability Company Agreement of Management LLC, as amended, these Class B Units are redeemable for a number of shares of the Issuer's Class B Common Stock equal to 1,048,784 less a number of shares of Class B Common Stock having a value equal to $3,343,758 on the date of such redemption (the "Benchmark Shares"), which is the sum of the benchmark amounts of the Class B Units. The reporting person expressly disclaims beneficial ownership of the Benchmark Shares.
F3	Any shares of the Issuer's Class B Common Stock issued to the reporting person upon a redemption of Class B Units will immediately and automatically convert to shares of the Issuer's Class A Common Stock on a one-for-one basis, and the corresponding Class B Units will be cancelled.
F4	Represents vested Deferred Equity Units issued under the Second Amended and Restated Warner Music Group Corp. Senior Management Free Cash Flow Plan (the "Plan"). These Deferred Equity Units will be settled for shares of the Issuer's Class A Common Stock on a one-for-one basis by no later than December 31, 2025. Upon such settlement, the corresponding Deferred Equity Units will be cancelled.