Endeavor is selling part of its stake in Epic Games, Inc., the publisher of video game Fortnite according to a report from Bloomberg. The owners of the UFC are hoping this move will help its fledgling businesses which have been hit hard by the coronavirus.
Endeavor will still hold onto some piece of Epic Games, but the move will help the company that has gone through layoffs, furloughs and salary reductions.
The article notes that it is not interested in selling off the UFC which it considers one of its major assets. It does look to be disposing of “noncore assets.”
The transaction is taking advantage of a surge of users for Fornite as many kids are home from school. According to Epic Games, Fortnite has more than 350 million users and logged more than 3.2 billion hours in April.
Payout Perspective:
The news of Endeavor seeking to raise capital from this move is another sign that the company is in need of a financial turnaround. The UFC can help with this as it is now set to have 4 events in May. Despite the lack of crowds, it will be able to generate revenue through PPV revenue and maintaining the requisite number of events by the end of 2020.
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