Jake Paul announced on Tuesday that he has invested in Endeavor stock. Endeavor is owned by the UFC. Paul proclaimed via social media (of course) that he is doing this to work on getting the company to raise fighter pay and provide health care to its athletes.
Paul and business partner Geoffrey Woo have purchased stock in the publicly traded company. Its not known how much the two have invested but Paul makes it sounds he will look to be an activist shareholder in order to force the management to make changes for the benefit of fighters.
I’ve invested in EDR (UFC) stock with my partner @geoffreywoo 2 focus on UFCs ESG standards relating to fighters. We believe EDR can drive long-term economic value by increasing UFC fighter pay & providing them healthcare. Reaching out to @EngineNo_1 to partner on this “endeavor”
— Jake Paul (@jakepaul) January 25, 2022
Are we to believe Paul, who has taunted and trolled UFC head Dana White at every chance, that this investment is for the greater good? Or, is it a PR stunt to remain relevant and in the news. And, the benefit of the investment is that he will reap the benefits of a shareholder from the great business of the company.
Although I do not know the specifics of the shareholder structure, its highly unlikely that Paul and Woo could come in and purchase enough shares to persuade Endeavor to change its business practices. Moreover, its likely that the key shareholders have a sufficient enough shares that Paul and Woo could never have enough rights as a shareholder to persuade some sort of vote.
For those wondering, a shareholder of a company could file a lawsuit against the management in what is called a derivative lawsuit. However, there are certain hurdles that the person filing the lawsuit must do to file the suit against the company. Whether or not raising fighter pay is for the greater good of the company and a meritorious lawsuit should be filed is too soon to evaluate. But, what we know now is that Paul is keeping his name in the news and from the outside, it looks like he’s helping out the plight of the fighters.
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