Entertainment Company Endeavor Files for IPO After 2019 Flop

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Endeavor Group Holdings Inc., the entertainment and Hollywood talent company, filed for an initial public offering after shelving an earlier effort in 2019.

The company in a filing Wednesday listed the size of the offering as $100 million, a placeholder that will change when it sets terms for the share sale.

One difference between Endeavor’s IPO plans this time is that Tesla Inc. Chief Executive Officer Elon Musk is listed as a nominee for its board of directors.

Endeavor, which owns the UFC sports league as well as events and talent businesses, has signed agreements with investors including Coatue Management, Dragoneer Investment and Elliott Investment Management for a private placement that could raise $1.77 billion. Shares in the placement are being offered at $24 each, according to the filing.

These investors could also participate in a separate private placement in which they buy shares directly from existing investors at $24 apiece, Endeavor said.

Proceeds from the IPO and the private placement will be used to buy additional interests in the UFC, according to the filing.

Private placement investors
  • Capital Research and Management Co.
  • Coatue Management
  • Dragoneer Investment Group
  • Elliott Investment Management
  • Fertitta Capital
  • Fidelity Management & Research Co.
  • MSD Capital
  • Mubadala Investment Co.
  • Silver Lake
  • Tako Ventures
  • Tencent
  • Third Point
  • Zeke Capital Advisors

The company, based in Beverly Hills, California, reported revenue of $3.48 billion for 2020, down from $4.57 billion the previous year.

In September 2019, Endeavor lowered its IPO target to $405 million from $619 million and later shelved the transaction, citing unfavorable market conditions. Peloton Interactive Inc. which went public the same week as Endeavor’s attempted debut, slumped almost 10% upon listing. The home fitness company has since bounced back and its shares are up more than 300% in the past year.

Endeavor’s offering is being led by Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., KKR & Co. and Deutsche Bank AG. Endeavor plans to list its shares on the New York Stock Exchange under the symbol EDR.

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