On Tuesday, Endeavor filed its full prospects with the Securities and Exchange Commission. The company has valued WME and the UFC at about $10 billion. It intends to raise about $511 million with its IPO with anticipated shares going between $23-24 per share.
In addition to the public shares, it is doing a private offering seeking to raise about $1.7 billion to buy out the remaining 49% of the UFC. While it currently owns 51%, the remaining 49% is still held by venture capital firms KKR and Silver Lake.
In its prospectus, it lists the UFC as its “most transformative acquisition.” It also notes that UFC Fight Pass subscriptions were up over 40% and “set a record for the most global” PPV buys in its history.
The prospectus also explained the UFC buyout and how it was seeking a private placement to raise capital for the acquisition.
The prospectus also addresses the pending UFC Antitrust lawsuit which awaits class certification.
Payout Perspective:
MPO will have more on the prospectus but the filing reflects the fact that the UFC is major contributor to the organization and a reason why investors would want to look at this IPO. Certainly, the antitrust lawsuit is a potential threat to the company but notwithstanding the UFC is a valuable asset. With a valuation of about $10 billion combined with WME, the UFC purchase in 2016 seems like a good investment. MPO will keep you posted.
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