UFC Mixed Martial Arts Parent Endeavor Group Holdings Launches IPO

Holding of media and talent agencies Endeavor Group Holdings, which owns the Ultimate Fighting Championship (UFC) Mixed Martial Arts (MMA) organization, Miss Universe organization, sports and talent management company IMG, sports promotion company Zuffa and other businesses , is planning an IPO, according to internal sources. Sportico reports that the sources remain anonymous and that Endeavor is not publicly commenting on its initial public offering plans at this time.

Endeavor, whose UFC affiliate recently partnered with an online sports betting and fantasy sports company DraftKings, attempted an IPO several years ago. According to Deadline, the holding company attempted to raise $ 700 million with its 2019 IPO, when the company as a whole was valued at $ 6.5 billion. Eventually, he attempted to sell 15 million shares at a price of $ 27 per share, lowering his target to around $ 400 million.

Image source: Getty Images.

Company executives apparently got nervous about the undervaluation after other companies went public and initially received a market beating. These included Interactive platoon, which has gained over 324% in the past year alone, and Uber Technologies, up 211% over the same period. A scuffle with the Writers Guild of America (WGA) over an alleged “double dipping” halted the first attempt at an IPO in late 2019.

However, as the COVID-19 pandemic began to lose its grip later in 2020 and economic restrictions have been relaxed, a wave of IPOs has started that continues into early 2021. Endeavor Group Holdings appears to be attempting to tap into this enthusiasm, although the date of the IPO, the number of shares involved and the expected valuation are unknown at this time. The company’s current revenue is probably around $ 3 billion.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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Johnnie Hill

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