Sportico broke the news that Endeavor, the owners of the UFC, have filed paperwork for an initial public offering with the Securities and Exchange Commission.
You might recall that Endeavor planned an IPO in 2019 but pulled back the launch. According to its 2019 prospectus it had $3 billion in revenue. With the IPO in September 2019, it had hoped to raise $600 million but with concerns about financials and the weak market at the time, the company decided to withdraw its efforts. The prospectus noted that Endeavor generated $3.16 billion in revenue in 2018 and a net income of $231 million.
With the sale of the UFC, to Endeavor, there is a proviso in the agreement in which the backers of the UFC sale, namely KKR and Silver Lake, could make the demand that the UFC itself go public. The first option for that to occur is August 2021.
Payout Perspective:
The news of Endeavor’s second shot at an IPO will spur talks about the UFC and its potential for its own public offering which could happen later this year. One has to think that Endeavor has repackaged itself in a way that would be more appealing to investors. Also, having the UFC making strides financially with its ESPN deal and the money it is making through PPV, it is an attractive investment.
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