Ari Emanuel’s Endeavor Group Holdings, which owns a majority stake in Ultimate Fighting Championship, said late Wednesday that it would explore strategic alternatives, which may mean a possible sale or potentially going private again after being a public company for two and a half years.
Shares of Endeavor jumped over 24% Thursday in midday trading.
A deal is not expected to impact TKO Group Holdings, which includes UFC and Vince McMahon’s WWE, the company said.
Silverlake, Endeavor’s major shareholder, echoed its desire to take Endeavor private, after it went public in April 2021.
“Silver Lake firmly believes in Endeavor’s business and is not interested in selling its shares in Endeavor to a third-party nor in entertaining bids for assets that are a part of Endeavor,” Silver Lake said in a news release, noting that it owns about 71% of the voting power for Endeavor.
Emanuel CEO of Endeavor said he doesn’t think the value of his company, which includes WME — the talent agency that reps stars like Matt Damon, Mark Walhberg and Christian Bale and sports and fashion management firm IMG — is being reflected in the market.
When Endeavor went public in 2021, shares opened at $27 on the New York Stock Exchange and had an issuing price of $24.
Since then, the company’s shares have hovered around $20- $23 a share, but days prior to Wednesday’s announcement had been trading between $17 and $18 a share.
“Given the continued dislocation between Endeavor’s public market value and the intrinsic value of Endeavor’s underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximizing value for our shareholders,” Emanuel, CEO of Endeavor, said in a statement.
The decision comes weeks after French billionaire Francois-Henry Pinault agreed to buy a majority stake in Endeavor rival Creative Artists Agency.
The deal was reportedly worth $7 billion.
Endeavor’s market value was $7.79 billion as of Wednesday’s market close, having declined 21% so far this year.
Emanuel, who is also CEO of TKO Group Holdings, said Endeavor said it wouldn’t consider selling its interest in the newly formed combat sports division.
Endeavor owns 51% of TKO, which began trading on the New York Stock Exchange last month.