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Apr. 20, 2021 1:40 PM ET
Endeavor Group Holdings, Inc. (EDR)By: Jerry Kronenberg, SA News Editor
Hollywood super-mogul Ari Emanuel’s Endeavor Group Holdings (NYSE:EDR), the parent company of the UFC mixed-martial arts league, Miss Universe competition and other top entertainment properties, disclosed terms Tuesday for an IPO that will value the firm at some $10B.
Endeavor wrote in a revised S-1 filing with the U.S. Securities and Exchange Commission that it plans to offer 21.3M shares of stock at an expected $23-to-$24 price range.
The company also wrote that Dragoneer Investment Group, Elliott Investment Management, Fertitta Capital, Fidelity, New England Patriots parent Kraft Group LLC, Michael Dell’s MSD Capital, Silver Lake and other A-list investors have agreed to a roughly $1.8B private placement.
The investors will buy a total of 74.5M shares from Endeavor and pre-IPO backer KKR. Endeavor is also granting underwriters the option to buy some 3.2M additional shares for overallotments.
In addition to participation from top investors, Endeavor has previously disclosed that Elon Musk of Tesla (NASDAQ:TSLA) will serve on its board.
Plans call for the company to list on the New York Stock Exchange under the ticker symbol “EDR” following the initial public offering, which the firm first disclosed earlier this month.
CEO Emanuel is a Hollywood power player who’s thought to be the inspiration for Jeremy Piven's character Ari Gold in the HBO series "Entourage." Emanuel is also the brother of former Chicago Mayor Rahm Emanuel and is reportedly close to former President Donald Trump.
EDR owns a mix of top entertainment properties. In addition to operating UFC and the Miss Universe pageant, Endeavor owns the famous IMG talent agency and has financed or created movies and TV shows such as “La La Land” and “Killing Eve.”
Emanuel wrote in a prospectus accompanying the company’s S-1 that “the events of 2020 reminded us of the enduring value of premium intellectual property and content while reinforcing the strength of our position within the sports and entertainment ecosystem. … We believe being a public company will enable us to accelerate this mission and further the vision we set out in 1995 to build a company for where the world was headed. We hope you’ll join us.”
The firm had planned to go public in 2019, but pulled its offering one day before the IPO was set to price, citing unfavorable market conditions. Peloton’s IPO had started trading the same day and fell 11%, while WeWork had pulled a planned initial public offering just days earlier.
Now, the company wrote in the S-1 that it expects to net some $1.8B from its new IPO and private placement after deducting for commission and expenses, or about $1.9B if underwriters exercise all overallotment options.
The firm said it plans to use $835.7M to buy the portion of UFC’s parent company that it doesn’t already own. It also intends to use some funds for future joint ventures, investments or acquisitions.
Seeking Alpha contributor Donovan Jones does a deep dive into the IPO here.
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