UFC Owners Hope to Raise More Than $600 Million with Public Offering of Endeavor Shares
Endeavor, the parent company of the Ultimate Fighting Championship,
will become a publicly-owned entity this fall in hopes of raising
$620 million.
According to Variety, the company expects a price of $30 to $32 per share during its initial public offering later this year. Endeavor plans to sell 19.4 million shares, with another 2.9 million shares potentially being offered to IPO underwriters such as Goldman Sachs, JP Morgan and Morgan Stanley.
Endeavor plans to use $500 million from the IPO to pay off debt,
while another $46.8 million will be targeted for working capital
and general corporate purpose. Some of the funds could also be used
for further acquisitions. Endeavor CEO Ari Emanuel and chairman
Patrick Whitesell will retain an 18.7 percent stake following the
IPO and remain primary owners of the company along with private
equity firm Silver Lake.
Emanuel, Whitesell and Silver Lake affiliates “will be able to control any action requiring the general approval of our stockholders, including the election of our board of directors, the adoption of amendments to our certificate of incorporation and by-laws and the approval of any merger or sale of substantially all of our assets,” according to Endeavor’s filing with the Securities and Exchange Commission.
Endeavor, which also presides over WME, IMG, Endeavor Content, Professional Bull Riders and more, spent more than $4 billion to purchase the UFC in 2016. The company is in a period of transition as it attempts to market itself as a “next-generation entertainment, lifestyle and sports-focused venture” thanks to its connections through WME and IMG connections. Wall Street has viewed Endeavor as somewhat of a liability due to its large debt and financial needs following a recent string of acquisitions.
The UFC has provided some stability over the past year due to its multi-year broadcast deal with ESPN. That includes less of a reliance on pay-per-view buys, as the sports network agreed to a deal to take over as the sole distributor of those events.
According to Variety, the company expects a price of $30 to $32 per share during its initial public offering later this year. Endeavor plans to sell 19.4 million shares, with another 2.9 million shares potentially being offered to IPO underwriters such as Goldman Sachs, JP Morgan and Morgan Stanley.
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Emanuel, Whitesell and Silver Lake affiliates “will be able to control any action requiring the general approval of our stockholders, including the election of our board of directors, the adoption of amendments to our certificate of incorporation and by-laws and the approval of any merger or sale of substantially all of our assets,” according to Endeavor’s filing with the Securities and Exchange Commission.
Endeavor, which also presides over WME, IMG, Endeavor Content, Professional Bull Riders and more, spent more than $4 billion to purchase the UFC in 2016. The company is in a period of transition as it attempts to market itself as a “next-generation entertainment, lifestyle and sports-focused venture” thanks to its connections through WME and IMG connections. Wall Street has viewed Endeavor as somewhat of a liability due to its large debt and financial needs following a recent string of acquisitions.
The UFC has provided some stability over the past year due to its multi-year broadcast deal with ESPN. That includes less of a reliance on pay-per-view buys, as the sports network agreed to a deal to take over as the sole distributor of those events.
