Endeavor announces plans to raise $712M in IPO per amended SEC filing

September 16, 2019

Endeavor Group Holdings, Inc., the parent company of Zuffa, announced on Monday that it plans to raise as much as $712.3 million.  In an amended filing with the SEC, it indicated that it will sell shares of common stock at $30 to $32 per share.

In addition to the 19.4 million shares of common stock it will sell, it is offering its underwriters the option to buy an additional 2.9 million shares.  There will be 4 classes of common stock.

According to the filing, CEO Ari Emmanuel, Executive Chairman Patrick Whitesell and Silver Lake Partners will hold a majority of the issued and outstanding Class Y common stock, Class X common stock and a majority of the combined voting power of common stock.

For the six months ending June 30th, the company recorded record revenue of $2.05 billion which is up from $1.5 billion in a year to year comparison from the previous time in 2018.  Per the Wall Street Journal, Endeavor attributes this to a 46.4% growth in revenue in its entertainment and sports segment.

Payout Perspective:

As if we didn’t know this, Zuffa’s revenues have increased year to year since the acquisition from the Fertittas.  The IPO has been delayed but when the company goes public expect more information about Zuffa’s contribution to the company’s revenues.

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