The Miss Universe organization, Endeavor Group Holdings, Inc., has filed earlier this month for another IPO. This would be the second time that Endeavor would file for an IPO after a failed attempt two years ago due to low investor demand.
The LA Times reported that the “IPO collapse was a rare stumble for Endeavor leader Ari Emanuel, whose ambition is to make Endeavor into a global entertainment juggernaut. The IPO was supposed to help fuel its ascent by raising cash to chip away at its $4.6-billion debt (at the time of the planned IPO) and fund future acquisitions.” And NBC stated that the “company generated sales of $3.48 billion and posted a net loss of $625.3 million last year. Revenue was more than $1 billion lower than in 2019 due to pandemic shutdowns“.
Bloomberg further reports:
Endeavor, which owns the UFC sports league as well as events and talent businesses, has signed agreements with investors including Coatue Management, Dragoneer Investment and Elliott Investment Management for a private placement that could raise $1.77 billion. Shares in the placement are being offered at $24 each, according to the filing. These investors could also participate in a separate private placement in which they buy shares directly from existing investors at $24 apiece, Endeavor said. Proceeds from the IPO and the private placement will be used to buy additional interests in the UFC, according to the filing. The company, based in Beverly Hills, California, reported revenue of $3.48 billion for 2020, down from $4.57 billion the previous year. In September 2019, Endeavor lowered its IPO target to $405 million from $619 million and later shelved the transaction, citing unfavorable market conditions.
NBC News further expounded on Elon Musk’s ties with Endeavor.
″Mr. Musk was selected to serve on our board of directors because of his professional background and experience running a public company, his previously held senior executive-level positions, his service on other public company boards and his experience starting, growing and integrating businesses,” Endeavor said in its IPO filing. The Emanuel family has a history of working with Musk. Ari Emanuel was an early proponent of Tesla, putting down a reservation for the company’s first production vehicle, the original Roadster. His siblings include Chicago’s 55th mayor, Rahm Emanuel, whose administration gave a big contract to The Boring Company in 2018. Musk has also been a popular guest on comedian Joe Rogan’s podcast, “The Joe Rogan Experience,” appearing as recently as February. Rogan is a UFC fan and has worked for the organization as a broadcaster. Rogan is also represented by Endeavor.
- Perman, S. (March 10, 2021). Endeavor looking at an IPO comeback. https://www.latimes.com/entertainment-arts/business/story/2021-03-19/endeavor-looking-at-an-ipo-comeback
- Tse, C. (April 1, 2021). Entertainment Company Endeavor Files for IPO After 2019 Flop. https://www.bloomberg.com/news/articles/2021-03-31/entertainment-company-endeavor-files-for-ipo-after-2019-flop
- Sherman, A. (April 1, 2021). Elon Musk tapped to join board of Endeavor Group, owner of UFC and Miss Universe contest. https://www.nbcnews.com/business/business-news/elon-musk-tapped-join-board-endeavor-group-owner-ufc-miss-n1262741